Q:

Boat cost 8350 and decreases in value by 12% per year, how much will the boat cost in 5yrs. A.14,715.55B. 8,290.00C. 4,406.56D. 3,877.77

Accepted Solution

A:
Let's do 8350 times .12. That's $1002. Now we do 8350-1002, which equals $7348. This is the boat's value after one year. Then, we will multiply that by 0.12, which equals $881.76, subtract that from the $7348 and then we get the boat's value after two years, which is $6466.24. We then multiply that by 0.12, which equals 775.9488, round that up and that is $775.95. Subtract 775.95 from the 6466.24 and we get the boat's value after three years, which is $5690.29. Multiply that by 0.12 again and we get 682.8348, round it down and that's $682.83. Subtract 682.83 by the 5690.29 and we will get $5007.46, which is the value of the boat after four years. Finally, we multiply 5007.46 by 0.12 and we get 600.8952, round up and we get $600.90, then subtract $600.90 from $5007.46Β  and we get our final answer, $4406.56, or C.

I hope this helps.