Question

A speed boat bought for $13,000 depreciates at 10% per annum compounded continuously. What is its value after 7 years? Round the answer to nearest dollar.

Answer 1

Answer:

6,456

Explanation:

Substitute the given values into the formula: A=Pe^-rt, where A represents the future value and P represents the initial (current) value.

Answer 2

The amount of value after 7 years when the purchase value of the speed boat is $13,000 should be considered as the $6,456.

Calculation of the amount:

Since the speed bought purchase value is $13,000

The depreciation rate is 10% per annum compounded continuously

The time period is 7 years

So here the amount should be

= $13,000 * e^-0.70

= $6,456

hence, The amount of value after 7 years should be considered as the $6,456.

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