Question

A jet ski depreciates 11% each year. If the jet ski was $8,000 at its time of purchase, what is the value of the jet ski after 5 years?

$13,480.47
$7,120.00
$6,958.86
$4,467.25

Answer 1

Explanation:

Losing 11 percent per year means 89 percent remains ...or .89 in decimal

Value = $8000 * (.89)^5 = $4,467.25

Answer 2

$4,467.25

Explanation:

`A=P(1+r)^t\\A=8000(1-0.11)^5\\A=8000(0.89)^5\\A\approx4467.25`