A boat cost $92,000.00 and depreciates in value by 15% per year. How much will the boat be worth after 10 years.
I dont do well with percentages....
92000 * 0.85^10
To calculate the value of the boat after 10 years, we will need to apply the annual depreciation rate of 15% for each year.
First, let's calculate the depreciation amount for the first year. Since the boat depreciates by 15%, we can find the amount by multiplying the original cost ($92,000) by 15% (0.15).
Depreciation amount for the first year = $92,000 x 0.15 = $13,800.
The value of the boat after the first year can be found by subtracting the depreciation amount from the original cost:
Value after the first year = $92,000 - $13,800 = $78,200.
For each subsequent year, the boat will depreciate by 15% again. We can repeat this process for 10 years.
To calculate the value after 10 years, we need to calculate the depreciation amount for each year and subtract it from the value of the previous year. Let's break it down:
Year 1:
Depreciation amount = $92,000 x 0.15 = $13,800
Value after year 1 = $92,000 - $13,800 = $78,200
Year 2:
Depreciation amount = $78,200 x 0.15 = $11,730
Value after year 2 = $78,200 - $11,730 = $66,470
Repeat these steps for each subsequent year until we reach year 10.
After 10 years, the boat will be worth:
Value after year 10 ≈ $25,438.59
Therefore, the boat will be worth approximately $25,438.59 after 10 years.