The cost of the sail boat depreciates over time exponentially if the cost of the sail boat was 225,000 in 2020 and depreciates at a rate of 2.5% annually how much is the sail boat worth in 2028

The value of the boat will be 183,746.66

Step-by-step explanation:

The formula that should be used for exponencial problems is:

P = Po * (1+r) ^t

Where P is the final value, Po is the inicial value, r is the rate and t is the amount of time.

In this problem, Po = 225000, r = - 2.5% = - 0.025 and t = 8 years

Then, we can calculate the value of the boat in 2028:

P = 225000 * (1 - 0.025) ^8

P = 225000 * (0.975) ^8 = 183,746.656

The value of the boat will be 183,746.66