Answer:
16%
Step-by-step explanation:
A boat depreciates in value according to the simple interest formula:
Y=[tex]20,000*(0.92)^{2}[/tex] = 16,928
From the above exponential function, we can see that:
The boat depreciates with the base number is: 0.92 and the initial value is 20,000 at the beginning,
So the rate of decay which can be written as a percentage:
1 - The value after 2 units of time / the initial value
= 1- (16,928 / 20,000)
= 1 - 0.84
= 0.16
= 0.16*100% = 16%
