Based on the given problem above, let's solve it step by step. Given that the boat costs $11, 850 now, and it will decrease in value every year to 10%, let us look for the cost of the boat after 8 years.
Year 1: 11,850 x .10 = 1, 185
11, 850 - 1, 185 = 10, 665
Year 2: 10, 665 x .10 = 1, 066.5
10, 665 - 1, 066.5 = 9, 598.5
Year 3: 9, 598.5 x .10 = 959. 85
9, 598.5 - 959.85 = 8, 638.65
Year 4: 8, 638.65 x .10 = 863.87
8, 638.65 - 863.87 = 7, 774.80
Year 5: 7, 774.80 x .10 = 777.48
7, 774.80 - 777.48 = 6, 997.32
Year 6: 6, 997.32 x .10 = 699.73
6, 997.32 - 699.73 = 6, 297.60
Year 7: 6, 297.60 x .10 = 629. 76
6, 297.60 - 629.76 = 5,667.84
Year 8: 5, 667.84 x .10 = 566.78
5, 667.84 - 566.78 = 5, 101.1
Therefore, after 8 years, the cost of the boat would only be $5, 101.1.
