The value of Boat with 17% depreciation rate per year will be $10,863.95 after 3 years.
What is Depreciation?
Depreciation represents the calculable decrease in value of assets with time. Tangible assets like buildings, instrumentation and vehicles area unit purchased at massive sums.
Formula to calculate Depreciation in the value of asset
A=P(1-r)∧T
Here, A is value of asset after depreciation(calculation)
P is Principal value(Actual price at which the asset was bought)
r is rate of depreciation annually in decimal
T is time period in years
We can use this formula for calculating the given problem.
Solution:
Converting rate in decimal, we get
Principal(P)=19000
Time(T)=3 years
r=17/100=0.17
A=P(1-r)∧T
⇒A=19000x(1-0.17)∧3
⇒A=19000x(0.83)∧3
⇒A=19000x0.571787
⇒A=10,863.953
Hence, the value of the boat after 3 years will be $10,863.953
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