sritz1022
Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A boat has a depreciation rate of 12% per year. If the original price of the boat was $15,000, what is the value of the boat 5 years later? Round your answer to the nearest penny (hundredths place value). ​

Sagot :

ReimiSugimoto

Answer: $7,915.98

Step-by-step explanation: This is an exponentially decaying problem, so that means we use the formula ab^x.

The a value is the original price or the starting point, which is 15,000. The b value is the ratio in which it decreases or increases. It is decreasing, so we subtract 12 from 100, which is 88. The ratio should be in decimal form, so it is 0.88. Finally, the x should be the exponent, the amount of times it is getting multiplied by the ratio. So the equation would be 15,000(0.88)^5.

Then, we solve.

0.88 * 0.88 * 0.88 * 0.88 * 0.88 = 0.5277319168

Then 0.5277319168 * 15,000 = 7,915.978752.

Of course, we round to the nearest hundredth, which is 7,915.98. Hope this helped.

We hope this was helpful. Please come back whenever you need more information or answers to your queries. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.