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Comparing Boat Resale Values After 3 Years: A Depreciation Analysis

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In this analysis, we explore the resale values of two boats after three years of depreciation. Boat A, costing $15,000, depreciates at a rate of 30% per year, while Boat B, priced at $12,000, has a 20% annual depreciation rate. We calculate the value of each boat after three years, revealing Boat A will be worth approximately $5,145 and Boat B will hold a value of around $6,144. Therefore, Boat B will retain greater value after three years, making it the better investment choice.

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Comparing Boat Resale Values After 3 Years: A Depreciation Analysis

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  1. Check it out! 3.3.2: Proving Average Rate of Change

  2. Lupita wants to buy a boat that will have the best resale value after 3 years. At one boat dealer, she found a boat she likes that sells for $15,000 and depreciates at a rate of 30% per year. What will be the value of the boat after 3 years? At another dealer, she found a boat that costs $12,000 and depreciates at a rate of 20% per year. What will be the value of the boat after 3 years? Which boat will have the greater value in 3 years? 3.3.2: Proving Average Rate of Change

  3. At one boat dealer, she found a boat she likes that sells for $15,000 and depreciates at a rate of 30% per year. What will be the value of the boat after 3 years? When the boat is new, it is worth $15,000; then it depreciates at a rate of 30% each year. Create a table to show the decrease in value for the first 3 years. 3.3.2: Proving Average Rate of Change

  4. Boat A will be worth $5,145 after 3 years. 3.3.2: Proving Average Rate of Change

  5. At another dealer, she found a boat that costs $12,000 and depreciates at a rate of 20% per year. What will be the value of the boat after 3 years? When the boat is new, it is worth $12,000; then it depreciates at a rate of 20% each year. Create a table to show the decrease in value for the first 3 years. 3.3.2: Proving Average Rate of Change

  6. Boat B will be worth $6,144 after 3 years. 3.3.2: Proving Average Rate of Change

  7. Which boat will have the greater value in 3 years? Boat A will be worth $5,145 after 3 years. Boat B will be worth $6,144 after 3 years. Boat B will be worth more than Boat A after 3 years. 3.3.2: Proving Average Rate of Change

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