Question

Some time ago, Tracie purchased two acres of land costing $67,900. Today, that land is valued at $64,800. How long has she owned this land if the price of the land has been decreasing by 1.5 percent per year?
A) 3.33 years
B) 2.48 years
C) 3.09 years
D) 2.97 years
E) 2.08 years

Answer 1

Answer:

C) 3.09 years

Explanation:

Calculation for How long has she owned this land

Using financial calculator to calculated the number of years

I/Y = -1.5%

Present value=PV = -$67,900

PMT = 0

Fair value=FV = 64,800

First step is to Press CPT and then N, which will gives us 3.09 years

Therefore has she to owned this land for 3.09 years.