Question

Bob bought a new house for $380,200. For tax purposes, he estimates the house will decrease in value by the same amount each year. After 5 years, the estimate value was $321,200. Describe the pattern that will generate the values of the house each year.

Answer 1

So the price of house 0f house after n number of year = 380,200 - 11800n

Explanation:

Bob has a bought a new house for $380,200. He estimates the value of the house after each year and he also assumes that the value of the house decreases by the same amount each year.

So to find the equation to define the value of the house after each year, we have to find out how much depreciation happens for the value of the house in each year.

Final value = $321,200

Depreciation each year =
`(380,200-321,200)/(5)`

= $11,800

So the price of house 0f house after n number of year = 380,200 - 11800n