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Home > INT3 > Chapter 7 > Lesson 7.2.5 > Problem 7-111

7-111.
  1. A two-bedroom house in Seattle was worth $400,000 in 2005. Its appreciation rate is 3.5% each year. Homework Help ✎

    1. How much is the house worth in 2015?

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

    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?

Write an equation based on the general exponential equation: y = abx

about $564,240

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

in 2025

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