Current value of the boat = $45000
Rate at which the value decrease = 8.5%
Value decreased after 1 year = [tex]\frac{8.5}{100}\times45000=3825[/tex]
Hence, value becomes = [tex]45000-3825=41175[/tex]
Value decreased after 2nd year =
[tex]\frac{8.5}{100}\times41175=3499.875[/tex]
Hence, value becomes = [tex]41175-3499.875=37675.125[/tex]
Value decreased after 3 year =
[tex]\frac{8.5}{100}\times37675.125=3202.385[/tex]
Hence, value becomes = [tex]37675.125-3202.385=34472.74[/tex]
So, value of the boat after 3 years becomes $34472.74
