3. You buy a new boat for 36,000 Each year the value of the boat depreciates at a rate of 14% per year. How much will the boat be worth in 7 years? Eqn Ans:

Question

Answer 1

To find the value of the boat after 7 years, we use the formula for exponential depreciation:

where:-

is the future value of the boat,-

is the initial purchase price of the boat (\

is the annual depreciation rate (14% or 0.14),-

is the number of years (7).Plugging in the values:

Now calculate:

So, the boat will be worth approximately \$13,577.38 in 7 years.

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