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? How can I explain this

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1. Let's look at \$1000

after 3 years depreciation of 10%
amount = 1000(.9)^3

Then this appreciates for 3 years at 10%

final amount = 1000(.9)^3 (1.1)^3
= 970.30

So what do you think?

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posted by Reiny

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