document.write( "Question 562480: The value of a property declines every year by 5%. Presently, its value is $350,000. What will be its value 4 years from now? \n" ); document.write( "
Algebra.Com's Answer #364601 by Sarpi(32)\"\" \"About 
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Value of a Property.
\n" ); document.write( "Let the timing be: t = 0,1,2,3,4,5 (in years)\r
\n" ); document.write( "\n" ); document.write( "Value at t=0 is $350,000
\n" ); document.write( "Depreciation rate = 5%
\n" ); document.write( "Therefore what will be value at t=4?\r
\n" ); document.write( "\n" ); document.write( "Long calculation:
\n" ); document.write( "0; 350,000
\n" ); document.write( "1; 350,000 - (350,000*5%) = 332,500
\n" ); document.write( "2; 332,500 - (332,500*5%) = 315,875
\n" ); document.write( "3; 315,875 - (315,875*5%) = 300,081.25
\n" ); document.write( "4; 300,081.25 - (300,081.25*5%) = 285,077.1875
\n" ); document.write( "5; 285077.1875-(285077.1875 *5%) = 270,823.3281\r
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\n" ); document.write( "\n" ); document.write( "Short Calculation (using the compounding formula)
\n" ); document.write( "Amount = Principal(1+Rate)^time\r
\n" ); document.write( "\n" ); document.write( "so here; principal is the initial value = $350,000
\n" ); document.write( " Rate is a declining rate, so -5%
\n" ); document.write( " time = 4yrs
\n" ); document.write( "A = 350,000 * (1-5%)^4
\n" ); document.write( "A = 350,000 * (0.95)^4
\n" ); document.write( "A = 285,077.1875\r
\n" ); document.write( "\n" ); document.write( "Hence the value 4 years from now will be $285,077.19 (rounded to 2 decimal)\r
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