SOLUTION: At one boat dealer, she found a boat she likes that sells for $15,000 and depreciates at a rate of 30% per year. What will be the value of the boat after 3 years?

Question 765749: At one boat dealer, she found a boat she likes that sells for $15,000 and depreciates at a rate of
30% per year. What will be the value of the boat after 3 years?
Answer by MathLover1(20849) (Show Source): You can put this solution on YOUR website!

you can do it this way:
In the problem you are given the rate of decrease of % or .
Each year, the boat is worth % of its value the previous year, so after years, its value will be
$ will cost less than year before; so price firs year after is $
next year value depreciates again for %; so new value will be
; so price second year after is $
and finally,
$; so price in three years is
$

or use exponential growth/decay formula:
Since the decay equation takes on the form , we can take note that , and .
Plugging this into the equation, we have

So after 3 years, the car will be worth

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