Posted by Nance B on Sunday, September 8, 2013 at 12:00pm.
Because of a recession, the value of a new house depreciated 10% each year for three years in a row. Then, for the next three years, the value of the house increased 10% each year. Did the value of the house increase, decrease, or remain the same after 6 years?

Math130  randy, Sunday, September 8, 2013 at 12:07pm
it decreased the first three years, then increased the next three years. so basically its like it remained the same

Math130  Steve, Sunday, September 8, 2013 at 6:36pm
Not quite
Decreasing for 3 years at 10%/yr, the value is now .9^3 = .729
Increasing for 3 years from the reduced value, it is finally worth
.729*1.1^3 = .970
SO, the house lost 3% over the 6 years.
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