Answer:
The worth of boat in 2013 will be $9202.6
Step-by-step explanation:
Rate of depreciation = 9% = 0.09
Cost of Boat in 2006 =$ 17,800
Cost of Boat in 2013 = ?
Years = 2013-2006= 7 years
The formula used is: [tex]\mathbf{A=P(1+r)^{t}}[/tex]
Since the value of boat is depreciating the value of r will be r=-0.09
Here P = 17,800 , r=-0.09 and t = 7 years Finding A
[tex]A=P(1+r)^{t}\\A=17,800(1+(-0.09))^7\\A=17,800(0.91)^7\\A=17,800(0.517)\\A=9202.6[/tex]
So, the worth of boat in 2013 will be $9202.6
