Question

Every year, the value of a condominium in Singapore appreciates by 15% of its value in the previous year. If the value of the condominium was $899300 in 2020, find its value in 2020.

Answer 1

To find the value of the condominium in 2020, we can work backward from the given information. Since we know that the value appreciates by 15% each year, we can calculate the value for the previous year using the formula:

Value in previous year = Value in current year / (1 + appreciation rate)

Let's calculate the value of the condominium in 2020:

Value in 2021 = $899,300 / (1 + 0.15) ≈ $781,521.74

Value in 2020 = Value in 2021 / (1 + 0.15) ≈ $781,521.74 / (1 + 0.15) ≈ $678,309.34

Therefore, the value of the condominium in 2020 is approximately $678,309.34.

Explanation: