Question

If a house is worth $125,000 and depreciates by 7.5% per year, how much is it worth in two years

Answer 1

Solution given;

principal [P]=$125,000

depreciated rate[R]=7.5%

time[t]=2 years

worth price of house [A]=???

we have

Worth price[A]=
`\large \bold P(1-(R)/(100))^(t)`

=
`125,000(1-(7.5)/(100))^(2)`

=125,000*0.925²

=125,000*0.855625

=106953.125

its worth price is $106953.125