A sailboat depreciates at 15% of its original value each year. If the sailboat was $9500 at its time of purchase, what is the value of the sailboat after 7 years?
The sailboat would be fully depreciated when the 7th year comes when it was depreciated 15% every year. This is because when you try to multiply 15% by 7 it would give you 105%, it already exceeds the 100% value of the sailboat.
