The worth of boat after 11 years is $ 3159.3013
Solution:
Given that,
Boat costs $16600 and decreased in value by 14% per year
To find: Worth of boat after 11 years
The formula for decreasing function is given as:
[tex]y = a(1-r)^t[/tex]
Where,
y is the value after "t" years
t is the number of years
a is the initial value
r is decreasing rate in decimal
From given,
a = 16600
t = 11
[tex]r = 14 \% = \frac{14}{100} = 0.14[/tex]
Substituting the values we get,
[tex]y = 16600(1-0.14)^{11}\\\\y = 16600(0.86)^{11}\\\\y = 16600 \times 0.1903\\\\y = 3159.3013[/tex]
Thus the worth of boat after 11 years is $ 3159.3013
