Math130
posted by Nance B .
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?

it decreased the first three years, then increased the next three years. so basically its like it remained the same

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.
Respond to this Question
Similar Questions

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 a. By what fraction does the value of the … 
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, … 
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? 
mcc
Larry bought a house for $220,000. After one year, its value appreciated (increased in value) by 15%. During the second year, its value depreciated (decreased in value) by 12% from its value at the end of the first year. What was the … 
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 ? 
MA112 HELP PLEASE
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 … 
Algebra
Because of a recession, the value of a new house depreciated 10% each year for 3 years in a row. Then, for the next 3 years, the value of the house increased 10% each year. Had the value of the house increased or decreased after 6 … 
Business studies
A machine was purchased with money borrowed from the bank at a cost of k50000.00 which is expected to last for 6 years and depreciated at 12.5% per 6,the depreciated value and the accumulated interest for year two (2)year (6) .The …