Houses in Madison's town are losing 11% of their value each year.
A) let v be the current value of Madison's house. Write an equation that describes the project value, p, at a time, t years from now.
B) Rewrite your equation to find the effective monthly percentage decrease in value.
For A I got p=v(0.89)^t
For B I got p=v(0.99)^12t
Are they correct? For B is the final answer the equation or would it just be 0.99% is decreazs in value?
Thanks.
Yes, they are correct!. For B, it is the equation!!. Try it. If you use just .99, you will get wrong answer.
Example: What would a house worth $100,000 today, be worth in 27 months from now?
You would use the equation I gave you:
p=v x .990336^27
p=100,000 x 0.7693563
p=$76,935.63. Now, you use .990336 to give you great accuarcy. If you only use.99, you would get:
p=$76,234.27
