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3 years ago

A house is purchased for $150,000 in 2002. The value of the house

Mathematics

1 answer:

Sunny_sXe [5.5K]3 years ago

4 0

9514 1404 393

Answer:

$67,516

Step-by-step explanation:

"Depreciates" means the value is getting smaller. The function that describes the situation is a decay function:

y= a(1-r)^x

Here, a=150000, r = 0.07, and x=11. The value is predicted to be ...

y = 150000(1 -0.07)^11 = 150000(0.93^11) = 67,515.53

The house is worth about $67,516 in 2013.

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