On 1st January 2016 Li bought a boat for $170000

The value of the boat depreciates by 8% per year.

Work out the value of the boat on 1st January 2019

Give your answer correct to the nearest dollar.

Answer: $132,376.96

Step-by-step explanation:

The cost of the boat was $170,000, but every year, the value depreciated by 8% and he bought the boat 2016.

In 2017, the boat depreciated by 8%,

8/100 * $170000 = $13,600.

$170,000 - $13600 = $156,400.

In 2018, the boat depreciated by 8%

8/100 * $156,400 = $12,512

$156,400 - $12,512 = $143,888

In 2019, the boat depreciated by 8%

8/100 * $143,888 = $11,511.04

$143,888 - $11,511.04 = $132,376.96

The current value of the boat is $132,376.96