Question

A boat costs 45,000 is depending at a rate of 20% per year. Find the value of the boat after 4 years PLEASE HELP!!!! ASAP!!!!

Answer 1

Answer:

Year 1 = 36,000

Year 2 = 28,800

Year 3 = 23,040

Year 4 = 18,432

Step-by-step explanation:

Let N = year

Year N = Initial * (1 - rate)^year

Year 1 = 45,000 * (1 - 0.2)^1

Year 1 = 45,000 * (0.8)^1

Year 1 = 45,000 * 0.8

Year 1 = 36,000

Year 2 = 45,000 * (1 - 0.2)^2

Year 2 = 45,000 * (0.8)^2

Year 2 = 45,000 * 0.64

Year 2 = 28,800

Year 3 = 45,000 * (1 - 0.2)^3

Year 3 = 45,000 * (0.8)^3

Year 3 = 45,000 * 0.512

Year 3 = 23,040

Year 4 = 45,000 * (1 - 0.2)^4

Year 4 = 45,000 * (0.8)^4

Year 4 = 45,000 * 0.4096

Year 4 = 18,432