Question

4) Daniel purchased land for $7,000 in 1998. The value of the land depreciated by 2% each year thereafter. Use an exponential function to find the approximate value of the land in 2006

Answer 1

The approximate value of land in 2006 is $5,955

Explanation:

We are told that the land depreciates in value by 2% each year, meaning after one year its value will be 98% value of the previous year.