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Leto [7]
3 years ago
14

The value of a house decreases at a steady rate of 20% each year. What is the total percentage loss (to the nearest integer) in

value of the house at the end of 5 years.
Mathematics
1 answer:
Westkost [7]3 years ago
8 0

Answer: The total percentage loss would be 67%.

Step-by-step explanation:

Since we have given that

Rate of decline each year = 20%

Number of years = 5

We need to find the total percentage loss in value of the house at the end of 5 years.

So, Total percentage loss would be

1-(1-\dfrac{r}{100})^5\\\\=1-(1-\dfrac{20}{100})^5\\\\=1-(\dfrac{4}{5})^5\\\\=1-(0.8)^5\\\\=0.67\\\\\approx 67%

Hence, the total percentage loss would be 67%.

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