Question

Chao bought a boat for HK$160 000
The value of the boat depreciates by 4% each year.

Work out the value of the boat at the end of 3 years.
Give your answer correct to the nearest HK$.

Answer 1

Answer:

$141,557.76

Step-by-step explanation:

Chao bought a boat for 160,000

The value of the boat reduces by 4% every year

Therefore the value of the most at the end of three years can be calculated as follows

= 100%- 4%

= 96%

= 160,000 × 96/100^3

= 160,000 × 0.96^3

= 160,000 × 0.884736

= 141,557.76

Hence the price of the boat after 3 years is 141,557.76