Problema Solution
a boat cost $11,850 and decreases in value by 10% per year. how much will the boat be worth after 8 years.
Answer provided by our tutors
the present value PV = $11,895 we need to find the future value FV after n= 8 years if the interest is i = 10%
FV = PV x (1.00 - i)^n
FV = 11,895(1.00 - 0.10)^8
FV = $5,120.41
after 8 years the boat will be $5,120.41 worth.