Question

You purchased a boat for $19,000 and can expect the boat to depreciate at an annual rate of 7.3%. What will the value of your car be 4 years after purchasing it

Answer 1

$14,030.48

Explanation:

We can use the following formula to solve:

`A=P(1-r)^t`

P = principal value

r = rate (decimal)

t = time (years)

First, lets change 7.3% into a decimal:

7.3% ->
`(7.3)/(100)` -> 0.073

Next, plug in the values:

`A=19,000(1-0.073)^4`

`A=14,030.48`

The value will be $14,030.48