A house value decreases by 6% per year. If the house is worth $250,000 today, what will its value be after 2 years?
1. Use the formula for exponential decay:
The formula for calculating the value of an asset after years with a depreciation rate (expressed as a decimal) starting from an initial value is .
In this case:
The initial value of the house is $.
The depreciation rate is , which in decimal form is .
The number of years is .
2. Substitute the values into the formula:
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