SOLUTION: A boat costs $10,450 and decreases in value by 5% per year. How much will the boat be worth after 14 years?

Algebra ->  Polynomials-and-rational-expressions -> SOLUTION: A boat costs $10,450 and decreases in value by 5% per year. How much will the boat be worth after 14 years?      Log On


   

Question 465445: A boat costs $10,450 and decreases in value by 5% per year. How much will the boat be worth after 14 years?
Answer by jorel1380(3719) About Me  (Show Source):
You can put this solution on YOUR website!
If the boat decreases by 5% each year, that means it will be only worth 95% of its value from the previous year. Therefore, its worth after 14 years is 10,450x(.95)^14=$5096.23..