boat costs $16,950 and decreases in value by 8% per year. How much will the boat be worth after 4 years?

Answer 1

This is an example of exponential decrease. At the end of a year, it is worth only 0.92 times what it was worth at the start of the year. Keep this up for n years and the value at the end of n years is

V(n) = ($16,950) (0.92ⁿ)

Plug in n=4 to get you final answer.