math word problem
posted by chandice .
The owner of a
rental house can depreciate its value over a period of 27 1/2
years, meaning that the value of the house declines
at an even rate over that period of time until the value is $0
a. By what fraction does the value of the house depreciate
the first year?
b. If the house is judged to be worth $85,000, what is
the value of the first year’s depreciation?

The wording of the question is somewhat confusing.
You state that the value declines at an "even" rate.
Are you saying that the rate is the same for each year? I am sure that is what you meant.
Mathematically, the value can never be zero, but since we are dealing with money, I picked .004 cents arbitrarily.
So let the rate of depreciation be r
then
85000(1r)^27.5 = .004
(1r)^27.5 = .004/85000
[(1r)^27.5]^(1/27.5) = (.004/85000)^(1/27.5)
1r = .54144
r = .45856
so it depreciates at a rate of 45.856% per year
for a) change the % to a fraction
for b) take 45.856% of 85000
Respond to this Question
Similar Questions

Math156
I can understand in my head how to solve it I can't figure it out on paper. Help......I'm sure this will be easy for someone. The Rental Depreciation Problem. The owner of a rental house can depreciate its value over a period of years, … 
math
I can understand in my head how to solve it I can't figure it out on paper. Help......I'm sure this will be easy for someone. The Rental Depreciation Problem. The owner of a rental house can depreciate its value over a period of years, … 
Huge Math Word Problem
The owner of a rental house can depreciate its value over a period of 27 1/2 years, meaning that the value of the house declines at an even rate over that period of time until the value is $0. My question is by what fraction would … 
math
The Rental Depreciation Problem. The owner of a rental house can depreciate its value over a period of 27 ½ years, meaning that the value of the house declines at an even rate over that period of time until the value is $0. a. By … 
Math
Because of a recession, the value of a new house depreciated 10% each year for 3 yr in a row. Then, for the next 3 yr, the value of the house increased 10% each year. Did the value of the house increase or decrease after 6 yr? 
math
The price in dollars of a house during a period of mild inflation is described by the formula P(t)=94000 e0.03 t, where t is the number of years after 1990. Answer the following questions: B. In the year 2000 the value will be increasing … 
math
Use any problem solving strategy to solve the following problem.The value of a house is expected to increase from its current value of $50,000 by 3%each year .What will the value of the house be after 3 years ? 
Math College 115
You spend $1000 on a computer and for tax purposes chose to depreciate it (or assume it decreases in value) to $0 at a constant rate over a 4year period. a) calculate the rate of chage of the assumed value of the equipment over 4 … 
College Algebra
You spend $1000 on a computer and for tax purposes chose to depreciate it (or assume it decreases in value) to $0 at a constant rate over a 4year period. a) calculate the rate of chage of the assumed value of the equipment over 4 … 
math
For tax and accounting purposes businesses often have to depreciate equipment values over time. One method of depreciation is the straightline method. Three years ago Hilde Construction purchased a bulldozer for $51,500. Using the …