joe buys a new boat for $45000. It depreciates 23% a year. How much will the boat be worth after 5 years? Which of the following formulas is appropriate to use for this situation?

a) $12180.53

b) A=P (1-r) ^n

Step-by-step explanation:

The formula for depreciation to use is this case is;

A=P (1-r) ^n

where

A=value of boat after 5 years

P=current value of boat = $45000

r=rate of depreciation = 23% = 0.23

n=time span after the boat was boat = 5 yrs

Applying the formula

A=$45000 (1-0.23) ^5

A=$45000 (0.77) ^5

A=$12180.53