SOLUTION: In 20003 Mr. Wasilk bought a speed boat for $4,000. The boat depreciates at a rate of 7% annually. Mr. Wasilk want to sell the boat in 2006. He found a buyer that offers $3,000

Question 451776: In 20003 Mr. Wasilk bought a speed boat for $4,000. The boat depreciates at a rate of 7% annually. Mr. Wasilk want to sell the boat in 2006. He found a buyer that offers $3,000 for the boat. You are Mr. Wasilk's advisor, should he sell the boat or wait for another offer? Explain you reasoning using at least 2 different representations (table, graph, or equation).$
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
If the boat depreciates at 7% annually, then the boat is worth only 93% of what it was at the beginning of the year. Thus after 3 years the boat is worth:
$4000x.93x.93x.93=4000x.804357=$3217.428---thus as Mr. Wasilk's advisor I would advise waiting for a higher offer.
Represented graphically, y=4*.93^x:

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