Answer :
The boat's value is given by the equation
[tex]$$
y = 20000(0.92)^t.
$$[/tex]
Here, the number [tex]$0.92$[/tex] is the retention factor that shows the boat keeps [tex]$92\%$[/tex] of its value each period.
To find the rate of decay, we subtract the retention factor from 1:
[tex]$$
\text{Decay rate (as a decimal)} = 1 - 0.92 = 0.08.
$$[/tex]
Converting this decimal to a percentage:
[tex]$$
\text{Decay rate (in percent)} = 0.08 \times 100\% = 8\%.
$$[/tex]
Thus, the rate of decay is [tex]$8\%$[/tex].
[tex]$$
y = 20000(0.92)^t.
$$[/tex]
Here, the number [tex]$0.92$[/tex] is the retention factor that shows the boat keeps [tex]$92\%$[/tex] of its value each period.
To find the rate of decay, we subtract the retention factor from 1:
[tex]$$
\text{Decay rate (as a decimal)} = 1 - 0.92 = 0.08.
$$[/tex]
Converting this decimal to a percentage:
[tex]$$
\text{Decay rate (in percent)} = 0.08 \times 100\% = 8\%.
$$[/tex]
Thus, the rate of decay is [tex]$8\%$[/tex].
