SOLUTION: 7. The value of a property declines every year by 4%. Presently, its value is $910,000. What will be its value 3 years from now?

Question 524170: 7.
The value of a property declines every year by 4%. Presently, its value is $910,000. What will be its value 3 years from now?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The value of a property declines every year by 4%. Presently, its value is $910,000. What will be its value 3 years from now?
------------
Each year it is worth 96% of its previous years value.
==============================================================
A(t) = Ao(0.96)^t
-----
A(3) = 910,000*0.96^3
-----
A(3) = 910,000*0.8847
-------------------
A(3) = $805,109.76
=======================
Cheers,
Stan H.
=====================================
RELATED QUESTIONS
The value of a property declines every year by 5%. Presently, its value is $350,000. What (answered by stanbon,Sarpi)

The value of a property declines every year by 5%. presently it's value is $350,000. What (answered by ewatrrr)

The value of a property declines every year by 6%. Presently, its value is 450,000. What... (answered by richwmiller)

The value of a property declines every year by 6%. Presently, its value is $118,000. What (answered by jorel1380)

1)Jhon's income is 20% more than that of Mr Thomas . How much percent is the income of Mr (answered by jorel555)

The owner of a rental house can depreciate its value over a period of 27 1/2 years,... (answered by jorel1380)

A car has a purchase price of $23,500. The value declines continuously at an exponential (answered by josgarithmetic,MathTherapy)

A bicycle is five years old. If it's value has been diminishing by 5% of its previous... (answered by Alan3354)

. A construction company purchases a bulldozer for $160.000. Each year the value of the... (answered by CPhill,Edwin McCravy)