Rhonda bought a new house for $248,000. If the house depreciates 0.05% each year, how much will the house be worth in six years?

Question

Rhonda bought a new house for $248,000. If the house depreciates 0.05% each year, how much will the house be worth in six years?

Answer 1

depeciation rate would be 0.0005, so each year's value is multiplied by 1-0.0005, or 0.9995.

 

In six years, value is 248,000(0.9995⁶).  You do the calculation.

 

Note there's a possibility that the depreciation rate you have stated may have actually been 5% per year, in which case the depreciation factor per year is 0.95