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Nana76 [90]
3 years ago
9

A house purchased for $230,000 has lost 6% of its value each year for the last four years. What is the house worth now?

Mathematics
1 answer:
lutik1710 [3]3 years ago
3 0
You can use the compound growth to work this out,

Firstly you need to make a multiplier for -6%;
1-(6/100) = 0.94

The you times the amount of money by 0.94 to the power of 4 because you are working out 4 years:
230000*0.94^4 = 179527.26

The answer is $179527.26,
Hope this helps! :)
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