Question

What is the value in millions of dollars of a downtown office building that cost 12 million dollars to build 20 years ago and depreciated at 9% per year

Answer 1

The value in millions of dollars of a downtown office building that cost 12 million dollars to build 20 years ago and depreciated at 9% per year is $1819738.95

Explanation:

Cost of building 20 years ago = 12000000

We are given that the cost depreciated at 9% per year

Formula :
`N(t)=N_0(1-r)^t`

Where N(t)= Population after t years

`N_0`=Initial population=12000000

r= rate of depreciation=0.09

t = 20 years

Substitute the values in the formula:

`N(t)=N_0(1-r)^t\\N(t)=12000000(1-0.09)^(20)`

N(t)=1819738.95

Hence the value in millions of dollars of a downtown office building that cost 12 million dollars to build 20 years ago and depreciated at 9% per year is $1819738.95