d) $4,406.56
To calculate the value of the boat after 5 years, we need to find what 88% of the original value is after each year.
After 1 year: $8,350 * 0.88 = $7,348
After 2 years: $7,348 * 0.88 = $6,461.44
After 3 years: $6,461.44 * 0.88 = $5,683.53
After 4 years: $5,683.53 * 0.88 = $4,995.09
After 5 years: $4,995.09 * 0.88 = $4,406.56
Therefore, the boat will be worth $4,406.56 after 5 years.
A boat costs $8,350 and decreases in value by 12% per year. How much will the boat be worth after 5 years?
a
$8,290.00
b
$14,715.55
c
$3,877.77
d
$4,406.56
1 answer
1 answer