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Joe Arcikoski's duplex depreciates 3% per year for 5 years. Since the building originally cost $20,000, what is the current value of the duplex?

User Dellkan
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1 Answer

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Final answer:

The current value of Joe Arcikoski's duplex is $17,000.

Step-by-step explanation:

The current value of Joe Arcikoski's duplex can be found using the formula:

Current Value = Original Value - (Depreciation Rate * Original Value)

Given that the original cost of the duplex is $20,000 and it depreciates 3% per year for 5 years:

Current Value = $20,000 - (0.03 * $20,000) * 5

Simplifying the expression, we have:

Current Value = $20,000 - $3,000

Current Value = $17,000

Therefore, the current value of the duplex is $17,000.

User Andrew Mackenzie
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