Question

The value of a piece of land deprecates at a rate of 0.60 per year after three years land is worth 2500 what was the original value of the building

Answer 1

Well, there is actually a formula for this kind of exercises:

n is the price the land had in the third year year

2500=n-nx0.6

2500=n(1-0.6)

2500=nx0.4

n=2500:0.4

n=6250

m is the price the land had in the second year

6250=m-mx0.6

6250=m(1-0.6)

6250=nx0.4

p=6250:0.4

p=15625

p is the price the land had in the first year

15625=p-px0.6

15625=p(1-0.6)

15625=px0.4

p=15625:0.4

p=39,062.5 <- this should be your answer. Hope this helps.