You bought a used boat for $2500. The boat depreciates at a rate of 7%. Estimate the reality of the boat in 2 years. Formula: y=C(1-r)

There are 2 methods that are easiest to do this. First you can take 7% and divide it by 100 so it turns into 0.07. Now multiply 0.07 x 2500 and you will get 175, which is 7% of 2500. If 7% Is 1 year and you need 2 years, multiply 7%(175) x2 and you’ll get 350. Now all you have to do is 2500-350 and there is your answer. Another way is to find 1% of 2500 by dividing it by 100. so 25 is 1% of 2500 just multiply that by 7 and you will have 7% of 2500. And you know what to do next.

The correct answer is -20y