Question

Can someone please explain how i would find this answer?
A jet ski depreciates at 11% of its original value each year. If the jet ski was $8000 at its time of purchase, what is the value of the jet ski after 5 years?

$13,480.47

$7,120.00

$6,958.86

$4,467.25

Answer 1

The jet ski looses 11% of its value, meaning it keeps 89%. If you were only solving for the value for one year, it would be .89* original value. Each additional year, you would mulipty that value by 89% again. So you can simplify this by saying, new value = old value * .89 ^ years passed

Answer 2

i dont get it

Answer 3

wait, nevermind, is ir $4,467?

Answer 4

you can take the easy way (which is what I do) and find the value by year. after the first year, the remaining value is 89% or .89 the original value, which we will now call value1. After the second year, the value is .89 of value1, which is value2. after the third year, its .89 of value2. and so on

Answer 5

and yeah, thats the answer