A boat costs 14950 and decrease in value by 7% per year how much will the boat be worth after 8 years?
If a boat decreases in value 7% in value, then our new value each year is 100% - 7% = 93%. So we have a B(y) function where B(y) is the value of the boat after y years:
B(y) = 14,950 * (1 - 0.07)^y
Simplifying, we get:
B(y) = 14,950 * (0.93)^y
The problem asks for B(8)
B(8) = 14,950 * (0.93)^7
B(8) = 14,950 * 0..6017
B(8) = 8,995.43
If a boat decreases in value 7% in value, then our new value each year is 100% - 7% = 93%. So we have a B(y) function where B(y) is the value of the boat after y years:
B(y) = 14,950 * (1 - 0.07)^y
Simplifying, we get:
B(y) = 14,950 * (0.93)^y
The problem asks for B(8)
B(8) = 14,950 * (0.93)^7
B(8) = 14,950 * 0..6017
B(8) = 8,995.43