Algebra-1

To calculate the value of the boat in 2012, we can use the formula V = A⋅(1 - r)^t, where:

V is the value of the boat after the specified time period,
A is the initial value or cost of the boat,
r is the rate of depreciation per time period, expressed as a decimal, and
t is the number of time periods.

In this case, let's calculate the value of the boat in 2012, which is 8 years after 2004.

A = $12,500 (initial value of the boat)
r = 7% = 0.07 (rate of depreciation per year)
t = 8 (number of years)

Plugging in these values, we have:

V = $12,500⋅(1 - 0.07)⁸

Simplifying the equation:

V = $12,500⋅(0.93)⁸

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