Celine L.

asked • 01/21/19

The value of a boat is $21,200. It loses 6% of its value every year. Find the approximate monthly percent decrease in value. Round your answer to the nearest hundredth of a percent.

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PETE C. answered • 12/16/19

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Since the boat decreases 6% PER YEAR in value,

then 1/12 of 6% is the percentage the boat decreases in value for one month.


.06/12 = .005


Rounding to the nearest HUNDREDTH OF A PERCENT,

.50 %

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Richard L.

I feel this may give the approximate percent decrease per month, but the exact can be found by solving the equation r^12 = .94, which gives about .9949 (after taking both sides to the 1/12). Subtracting this from 1 gives .0051, which is .51% rounded to the nearest hundredth of a percent. It's very close to .005, but slightly different because the compounded .51% monthly decrease amounts to a 6% decrease per year.
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03/18/22

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