A $250,000 house depreciates 2.5% each year. What is its value in 5 years? Round all answers to 2 decimal places. Add a comma and a dollar sign in the answer

Question

math homwork calculus

Answer 1

A = P*(1 - r)^t

 

Where:

A = the depreciated value of the house

P = the initial value of the house = $250,000

r = the annual rate of depreciation expressed as a decimal = 2.5% = 0.025

t = years = 5

 

A = ($250,000)*(1 - 0.025)⁵

 

A = ($250,000)*(0.975)⁵

 

A = ($250,000)*(0.881)

 

Solve for A