Answer:
The equation is
[tex]V(3) = 7650(0.86)^{3}[/tex]
Which means that the value of the vehicle in 3 years is $4,865.8
Step-by-step explanation:
The equation for the value of a product with a depreciation rate of r(as a decimal) is given by:
[tex]V(t) = V(0)(1-r)^{t}[/tex]
In which V(0) is the initial value.
Your shiny new boat cost $7650
This means that [tex]V(0) = 7650[/tex]
The depreciation for your boat is 14% per year.
This means that [tex]r = 0.14[/tex]
So
[tex]V(t) = V(0)(1-r)^{t}[/tex]
[tex]V(t) = 7650(1-0.14)^{t}[/tex]
[tex]V(t) = 7650(0.86)^{t}[/tex]
You want to know the value of your vehicle in 3 years. What is the equation that models this problem?
The equation is
[tex]V(3) = 7650(0.86)^{3}[/tex]
Which means that the value of the vehicle in 3 years is $4,865.8
