Answer:
$141,557.76
Step-by-step explanation:
Chao bought a boat for 160,000
The value of the boat reduces by 4% every year
Therefore the value of the most at the end of three years can be calculated as follows
= 100%- 4%
= 96%
= 160,000 × 96/100^3
= 160,000 × 0.96^3
= 160,000 × 0.884736
= 141,557.76
Hence the price of the boat after 3 years is 141,557.76
