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HELP, IM STUCK, SOMEONE HELP (thank you)

Your family bought a house 10 years ago. Your neighborhood has

declined 3% per year. If you initially paid $179,000 for their house,

write an equation to model the value of your house after t years.

How much your house will be worth today?

User Navid Khan
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1 Answer

2 votes

Answer:

Normally there would be a salvage value involved here but if not is provided, I’m guessing they just want the most basic understood method....

$179,000.00 * 3% = $5,370.00

$179,000.00 - $5370.00 = $173,630.00

$173,630.00 * 3% = $5208.90

$173,630.00 - $5208.9 = $168,421.10

$168,421.10 * 3% = $5052.633

$168,421.10 - $5052.63 = $163,368.46

$163,368.46 * 3% = $4901.05

$163,368.46 - $4901.05 = $158,463.40

I Only did the first four you must do the rest. (THIS IS LONG HAND! SEE BOTTOM FOR FORMULA)

The equation is either, current value, minus (Current value X percentage of depreciation value) = depreciation value, or Current value - ((starting value - accumulated depreciation) X depreciation rate ) I hope that is close to what you’re looking for. The only other method I know of requires you to reference a dang chart.

I’m sorry I took so long too fully come up with it, my brain math is a little rusty.

User NYCeyes
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