Question

Use the table to answer the question.

This table shows the decreasing amount of money over the years, with the amount for year 2 unknown.
Year 0 1 2
Amount ($) 6,500 5,655 ?

Townes bought a personal watercraft for $6,500. If it depreciates in value by 13% each year, the situation can be modeled using a geometric sequence with a common ratio of 0.87, which is started in the table. How much will the personal watercraft be worth after two years? Round the answer to the nearest whole dollar.(1 point)
Responses

Answer 1

Year 2 value = 6500 × 0.87^2 = 6500 × 0.7569 ≈ 4,919.85, rounded = $4,920.