Question

A home was sold in 2010 for $250,000. Its value

depreciated by 3.4% yearly. What is the value of the
house in 2012?

Answer 1

$233,289

Explanation:

250000 *.034=8500

250000-8500=241,500

repeat

Answer 2

Depreciation formula: starting value x (1-rate)^time

250,000(1-0.034)^2 years

250000(0.996)^2= $233,289

The answer is $233,289