If a boat decreases in value 7% in value, then our new value each year is 100% - 7% = 93%. So we have a B(y) function where B(y) is the value of the boat after y years:

B(y) = 14,950 * (1 - 0.07)^y

Simplifying, we get:

B(y) = 14,950 * (0.93)^y

The problem asks for B(8)

B(8) = 14,950 * (0.93)^7

B(8) = 14,950 * 0..6017

B(8) =

**8,995.43**