Question

question 3 (multiple choice worth 1 points) (05.01r mc) a jet ski depreciates 11% each year. if the jet ski was $8,000 at its time of purchase, what is the value of the jet ski after 5 years? $13,480.47 $7,120.00 $6,958.86 $4,467.25

Explanation:

Step1: Define depreciation formula

The annual depreciation formula for value is $V = P(1 - r)^t$, where $P$ = initial value, $r$ = annual depreciation rate, $t$ = time in years.

Step2: Plug in given values

$P = 8000$, $r = 0.11$, $t = 5$
$V = 8000(1 - 0.11)^5 = 8000(0.89)^5$

Step3: Calculate $(0.89)^5$

$0.89^5 = 0.89\times0.89\times0.89\times0.89\times0.89 \approx 0.5584$

Step4: Compute final value

$V = 8000\times0.5584 \approx 4467.25$

Answer:

$4,467.25$