A home purchased for $300,000 depreciated 8% over a 1-year period. What was the value of the home after at the end of the year?

Elementary Algebra
17th Edition
ISBN:9780998625713
Author:Lynn Marecek, MaryAnne Anthony-Smith
Publisher:Lynn Marecek, MaryAnne Anthony-Smith
Chapter3: Math Models
Section: Chapter Questions
Problem 430PT: Melinda deposited $5,985 in a bank account with an interest rate of 1.9%. How much interest was...
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A home purchased for $300,000 depreciated 8% over a 1-year period. What was the value of the home after at the end of the year?

Expert Solution
Step 1

We have been given that a home was purchased at a value of $300000 and its value depreciated at a rate of 8% for next one years. We are required to find the new value of the home after an year.

We can find the new value by subtracting 8% of 300000 from 300000. Thus, we get the new value as shown below:

 

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