A boat costs 12,050 and decreases in value by 12% per year. How much will the boat be worth after 9 years?
To find out how much the boat will be worth after 9 years, we need to calculate and subtract the decrease in value for each year.
The decrease in value can be calculated by multiplying the original value of the boat by the decrease percentage, which is 12% or 0.12.
After 1 year, the value of the boat will be $12,050 - (0.12 * $12,050) = $12,050 - $1,446 = $10,604.
After 2 years, the value of the boat will be $10,604 - (0.12 * $10,604) = $10,604 - $1,273.28 = $9,330.72.
Following the same pattern, we can calculate the value of the boat after each year:
Year 3: $9,330.72 - (0.12 * $9,330.72) = $9,330.72 - $1,119.68 = $8,211.04.
Year 4: $8,211.04 - (0.12 * $8,211.04) = $8,211.04 - $985.32 = $7,225.72.
Year 5: $7,225.72 - (0.12 * $7,225.72) = $7,225.72 - $867.08 = $6,358.64.
Year 6: $6,358.64 - (0.12 * $6,358.64) = $6,358.64 - $763.03 = $5,595.61.
Year 7: $5,595.61 - (0.12 * $5,595.61) = $5,595.61 - $671.47 = $4,924.14.
Year 8: $4,924.14 - (0.12 * $4,924.14) = $4,924.14 - $590.90 = $4,333.24.
Year 9: $4,333.24 - (0.12 * $4,333.24) = $4,333.24 - $519.99 ≈ $3,813.25.
Therefore, the boat will be worth approximately $3,813.25 after 9 years.