Question

A boat costs $11,850 and decreases in value by 10% per year. How much will the boat be worth after 8 years?

Answer 1

100% - 10% = 90%

To convert 90% into a decimal, divide the percentage by 100.

90% / 100 = 0.9

Now take 0.9 and raise it to the power of 8.

We get: 0.43046721

0.43046721 * 11850 = 5101.0364385

or $5101.04 rounded to the nearest cent.