A homes value, due to depreciation, was estimated to be $765,000 at the end of six years.
If the annual rate of depreciation was 2.5% what was the original cost of the home ?
The answers are posted below the wildlife photo (royalty free). Please take your time.
A. $900,000
Multiply 6 years times 2.5% and we get 15%.
Subtract 15% from 100% value and we get 85% total value depreciation over six years.
Now divide .85 or 85% into the current estimated depreciated value of $765,000 and we get $900,000.
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