Question

Katie's Construction Company has built a home in a new subdivision and it was sold 6 months after it was built, for $48,500. This amount reflected a depreciation amount of 3%.

Knowing this, what was the original asking price on the home?

a) $48500 b) $50000 c) $53000 d) $51500

Answer 1

$50,000

Step-by-step explanation:

Sale of the home = $48,500

Given that this amount reflected a depreciation amount of 3%.

Let the original asking price be x

Therefore

x - 3%x = $48500

x - 0.03x = $48500

0.97x = $48500

x = $48500/0.97

x = $50,000

Th original asking price for the home was $50,000.