Given the formula:

V = C(1-r)^t

v is the values

c is the original cost = 40,000

r is the rate = 8% = 0.08

t is the number of years

Given the information above, we need to find t such that v= 18,000

We will substitute the given information into the equation.

==> 18,000 = 40,000 *( 1- 0.08)^t

==> 18,000 = 40,000*(0.92)^2

We will divide by 40,000

==> (0,92)^t = 0.45

Now we will take the logarithm for both sides.

==> log (0.92)^t = log 0.45

==> t* log (0.92) = log 0.45

==> t= log 0.45 / log 0.92 = 9.6 years

**Then, it takes 9.6 years for the boat to be worth $18,000.**

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