Question

If a boat depreciates in value according to the simple interest formula Y=20,000(.92)^2 find the rate of decay. Write as a percentage.

Answer 1

$28,000

Explanation:

Answer 2

16%

Explanation:

A boat depreciates in value according to the simple interest formula:

Y=
`20,000*(0.92)^(2)` = 16,928

From the above exponential function, we can see that:

The boat depreciates with the base number is: 0.92 and the initial value is 20,000 at the beginning,

So the rate of decay which can be written as a percentage:

1 - The value after 2 units of time / the initial value

= 1- (16,928 / 20,000)

= 1 - 0.84

= 0.16

= 0.16*100% = 16%