Asked by Jenna
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 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?
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?
Answers
Answered by
Damon
1/27.5 = .03636 or about 3.6 % per year
85,000/27.5 = $3090.91
85,000/27.5 = $3090.91
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