Edgar purchased a home for $182,100 to home appreciates about 3.5% each year what is the value of the home after 12 years
1 answer:
Answer:
the value of the home after 12 years =$275,165.60
Step-by-step explanation:
To find value of appreciation after 12 years
We apply exponential growth formula
Where a represents the initial amount (purchased amount)
a= 182,100
r = rate of interest ( appreciation percentage) = 3.5% = 0.035
x represents the time period= 12 years
Plug in all the values
y= 275165.6025027724
y=$275165.60
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£7200
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80% = = 0.8
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In the second year it depreciates by 10% of it's value, that is it is worth 90% of it's value at the end of the first year.
90% = = 0.9
value after 2 years = 0.9 × £8000 = £7200