Question

13. The value of a boat is depreciating at a rate of 7% per year. In 2004, the
boat was worth $192,000. Find the value of the boat in 2013.

Answer 1

Answer: Depreciating at 7% 100 - 7 = 93%

93% = 93/100 = 0.93

0.93 is your factor of depreciation.

There are 9 years between 2004 and 2013

So, you set 9 as power on your factor

0.93^9

Multiply your original value

$192,000 x 0.93^9

= $99,918.93

This is the value of the boat in 2013.

Step-by-step explanation: Hope this helps