Question

The value of a house depreciates by 6% per year. Work out the current value of a house bought 3 years ago for £250000.

Answer 1

$\bf \qquad \textit{Amount for Exponential Decay} \\\\ A=P(1 - r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\to &250000\\ r=rate\to 6\%\to \frac{6}{100}\to &0.06\\ t=\textit{elapsed time}\to &3\\ \end{cases} \\\\\\ A=250000(1-0.06)^3\implies A=250000(0.94)^3\implies A=207646$