Answer
Find out the how much will the boat be worth after 5 years.
To prove
As given
A boat costs $19,200 and decreases in value by 12% per year.
This is denoted by the exponential decreasing function.
y = a (1 - i)^{t}
Where y is the intial value, i is the interest in the decimal form and t is the time.
Here
a = $19,200
t = 5 years
i = 12 %
12% is written in the decimal form
[tex]= \frac{12}{100}[/tex]
= 0.12
Put in the formula
y = 19200(1 - 0.12)^{5}
y = 19200 × 0.527732
y = $10132.5 (Approx)
Therefore the boat worth after 5 years will be $10132.5 (Approx)
