### Home > INT3 > Chapter 7 > Lesson 7.2.5 > Problem7-111

7-111.

A two-bedroom house in Seattle was worth $400,000$ in 2005. Its appreciation rate is $3.5\%$ each year.

1. How much is the house worth in 2015?

Write an equation based on the general exponential equation: $y = ab^{x}$

about $564,240$

2. When will it be worth $800,000$?

Using the equation you wrote in part (a), let $y = 800,000$.

in 2025

3. In Jacksonville, houses are depreciating at $2\%$ per year. If a house is worth $\200,000$ now, how much value will it have lost in $10$ years?

The multiplier is NOT $0.02$. What percent of the value of a home remains each year if it is depreciating at $2\%$?

about $36,585$