4) Which model represents the value of the boat n years after it was purchased? *
The average depreciation rate of a new boat is approximately 8% per
year. If a new boat is purchased at a price of $75,000, which model
is a recursive formula representing the value of the boat n years after
it was purchased?
(1) an =
75,000(0.08)"
(3)
an = 75,000(1.08)"
(2) 20 = 75,000
(4) ao = 75,000
An = (0.92)"
An = 0.92(an - 1)