Answer:
A.) $3,159.30
Step-by-step explanation:
We have been given that a boat costs $16,600 and decreases in value by 14% per year.
We will use exponential decay formula to solve our given problem.
[tex]y=a\cdot (1-r)^x[/tex], where,
y = Final amount,
A = Initial value,
r = Decay rate in decimal form.
[tex]14\%=\frac{14}{100}=0.14[/tex]
[tex]y=\$16,600\cdot (1-0.14)^11[/tex]
[tex]y=\$16,600\cdot (0.86)^11[/tex]
[tex]y=\$16,600\cdot 0.1903193578437064[/tex]
[tex]y=\$3159.3013402055[/tex]
[tex]y\approx \$3159.30[/tex]
Therefore, the value of boat after 11 years would be $3159.30 and option A is the correct choice.
