A boat costs $78,000.00 and depreciates in value by 13% per year. How much will the boat be
worth after 10 years?
To calculate the value of the boat after 10 years, we need to determine the value of the boat after each year of depreciation.
After the first year, the boat will be worth:
$78,000.00 - (13% of $78,000.00) = $78,000.00 - $10,140.00 = $67,860.00
After the second year, the boat will be worth:
$67,860.00 - (13% of $67,860.00) = $67,860.00 - $8,829.80 = $59,030.20
Continuing this calculation for 10 years, we find that the boat will be worth approximately $22,298.83 after 10 years.