Question

A house was purchased in 2005 for $150,000. It is now valued at $135,000. What is the rate (percent) ofdepreciation for the house?

Answer 1

The percent depreciation for the house is;

`10\text{\%}`

Step-by-step explanation:

Given that a house was purchased in 2005 for $150,000 and It is now valued at $135,000.

The percentage depreciation would be;

`r=\frac{\text{ initial value -final value}}{\text{ initial value}}*100\text{\%}`

Given;

`\begin{gathered} \text{Initial value = \$}150,000 \\ \text{final value = \$}135,000. \end{gathered}`

Substituting;

`\begin{gathered} r=(150000-135000)/(150000)*100\text{\%} \\ r=0.1*100\text{\%} \\ r=10\text{\%} \end{gathered}`

Therefore, the percent depreciation for the house is;

`10\text{\%}`