A jet ski costs $3250 and decreases in value by 15% per year. How much will the jet ski be worth after 6 years?
Question
A jet ski costs $3250 and decreases in value by 15% per year. How much will the jet ski be worth after 6 years?
Solution
Step 1: Understand the problem. The jet ski's value decreases by 15% each year. We need to find out its value after 6 years.
Step 2: Identify the initial value of the jet ski, which is $3250.
Step 3: Understand that a 15% decrease means the jet ski retains 85% of its value each year. In decimal form, this is 0.85.
Step 4: To find the value of the jet ski after 6 years, we need to multiply the initial value by 0.85 (the remaining value after each year's decrease) six times. This is equivalent to raising 0.85 to the power of 6.
Step 5: Perform the calculation. 1462.04 approximately.
So, the jet ski will be worth about $1462.04 after 6 years.
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