A boat cost 12,050 and decreases in value by 12% per year. How much will the boat be worth after 9 years

Given:

Cost = 12,050

depreciation rate = 12%

year beginning value dep. rate depreciation ending value

1 12,050.00 12% 1,446.00 10,604.00

2 10,604.00 12% 1,272.48 9,331.52

3 9,331.52 12% 1,119.78 8,211.74

4 8,211.74 12% 985.41 7,226.33

5 7,226.33 12% 867.16 6,359.17

6 6,359.17 12% 763.10 5,596.07

7 5,596.07 12% 671.53 4,924.54

8 4,924.54 12% 590.94 4,333.60

9 4,333.60 12% 520.03 3,813.56

The boat will be worth $3,813.56 after 9 years.

Depreciation = beginning cost x depreciation rate

Ending cost = beginning cost - depreciation

Depreciation is the wear and tear of an object that decreases its value.