The boat will be worth $10,132.45 after 5 years.
Year 12% Value
0 $19,200
1 2,304 16,896
2 2,027.52 14,868.48
3 1,784.22 13,084.26
4 1,570.11 11,514.15
5 1,381.70 10,132.45
OR YOU CAN JUST DO IT LIKE THIS.
100% - 12% = 88% / 100% = 0.88
$19,200 * 0.88 * 0.88 * 0.88 * 0.88 * 0.88 = 10,132.4528
0.88 is multiplied 5 times to the original cost because 88% of the previous year's value will be the basis for the 12% decrease in value.
