A boat depreciates 12.75% per year. If the boat is purchased for $7500, what is the equation of the exponential equation? How much will the boat be worth in 6 years?
For this case we have an equation of the form:  y = A * (b) ^ t  Where,  A: initial cost  b: growth rate  t: time in years  Substituting values we have:  y = 7500 * (1.1275) ^ t  For year 6 we have:  y = 7500 * (1.1275) ^ 6  y = 15408.50724  Answer:  y = 7500 * (1.1275) ^ t  y = 15408.50724 $ (year 6)
