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?

Algebra ->  Percentage-and-ratio-word-problems -> 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?      Log On


   

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) About Me  (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?
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Each year it is worth 96% of its previous years value.
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A(t) = Ao(0.96)^t
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A(3) = 910,000*0.96^3
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A(3) = 910,000*0.8847
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A(3) = $805,109.76
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Cheers,
Stan H.
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