SOLUTION: A boat cost 12,050 and decreases in value by 12% per year.How much will the boat be worth in 9 years?

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Question 624816: A boat cost 12,050 and decreases in value by 12% per year.How much will the boat be worth in 9 years?
Answer by reynard2007(52) About Me  (Show Source):
You can put this solution on YOUR website!
Each year, the value of the boat decreases by 12%, only leaving 88% of the previous year's value. The same happens next year and the year after that. Do that for nine years, you would be multiplying by 88% nine times to the original value. So, here is the final equation:
12050%2A0.88%5E9
12050%2A0.3165
3813.56
The value of the boat after nine years would be $3813.56.