To calculate the future value of an asset after a certain number of years, you can use the formula:
Future Value = Present Value * (1 - Depreciation Rate)^Number of Years
For the first question, the boat is originally worth $92,000 and depreciates by 15% per year. To find the value after 10 years, we can plug in the numbers into the formula:
Future Value = $92,000 * (1 - 0.15)^10
Future Value = $92,000 * 0.85^10
Future Value ≈ $18,112.45
Therefore, the boat will be worth approximately $18,112.45 after 10 years.
For the second question, we need to calculate the compound interest over 35 years. We can use the compound interest formula:
Future Value = Principal * (1 + Interest Rate/Compounding Period)^(Number of Compounding Periods)
The principal is $6,000, the interest rate is 8%, and the compounding period is semi-annually (twice a year). The number of compounding periods is 35 * 2 = 70.
Future Value = $6,000 * (1 + 0.08/2)^70
Future Value = $6,000 * 1.04^70
Future Value ≈ $93,429.71
Therefore, the balance after 35 years would be approximately $93,429.71.
For the third question, we can use the compound interest formula again. The principal is $3,300, the interest rate is 4%, and the compounding period is annually (once a year). The number of compounding periods is 3.
Future Value = $3,300 * (1 + 0.04/1)^3
Future Value = $3,300 * 1.04^3
Future Value ≈ $3,712.05
Therefore, the balance after 3 years would be approximately $3,712.05.