Asked by LaurenMaths 💯

Gary brought a house for £235000. In the first year the value of the house depreciated by 5%. In each of the years 2,3, and 4 the value of the house increased by 7%. Work out the value of the house at the end of the fourth year?

VERIFIED

Yassin Ahmed

I’ll make maths your favourite subject.

This question is testing your understanding of multipliers. In the first year Since the house value depreciated by 5% the multiplier we use is: 100% - 5% = 95% = 0.95 So we multiply £235,000 by 0.95 which gives us: £223,250. Let’s move on to the second year: Since the house value increases now, our multiplier is: 100% + 7% = 107% = 1.07 so we multiply the current house value which is £223,250 by 1.07 which gives: £238,877.50 in the third year as the house value increases by the same percentage we again use a multiplier of 1.07. £238,877.50 x 1.07 = £255,598.925 (note I dId not round mt value here as I have not finished the question yet) in the fourth year we do the same thing again as the house value increases by 7%. £255,598.925x 1.07 = £273,490.85 Thus by the end of the fourth year the house value is: £273,490.85 _____________________________________________ Alternatively if you are more advanced and comfortable with multipliers you can instantly do the following sum: £235,000 x 0.95 x (1.07)^3 = £273,490.85 Where the ^3 means cubed. This is because for three years the house value increased by 7%. Hope this makes sense, if not give me a message.

Yassin also answered

Asked in Maths 💯

ASKED BY SOMERSBY

MATHS 💯

How do you calculate the energy rating of an appliance?

You can use this formula to estimate an appliance's energy use: (Wattage × Hours Used Per Day) ÷ 1000 = Daily Kilowatt-hour (kWh) consumption 1 kilo...

ASKED BY DIANA

MATHS 💯

The tax rate on Jerome Jame's $112,000 vacation home is 25 mills. The property is assessed at full value. How much will Jerome pay in taxes this year? A. $780 B. $7,800 C. $2,800 D. $28,00?

Hello Diana. The Mills rate represents a figure amount per $1000 of the assessed value of the property (mills is derived from the Latin word "milles...

ASKED BY SOPHIÉ

MATHS 💯

How do I find the point of contact of a tangent to a curve or circle?

the point of contact = points of intersections to find this you can equate the both equations of the circle and the tangent then rearrange to find t...

ASKED BY FATIMA

MATHS 💯

How to prepare for a Spanish speaking exam? What do they ask and how to answer? Please respon?

So assuming you’re sitting AQA Spanish, there are 3 sections, first your roleplay, so before you go into the room with your teacher you will be hand...

ASKED BY JOSH

MATHS 💯

How do I find the area of a triangle when I only know the three side lengths?

use the cosine rule b^2 + C^2 -A^2/ 2bc to find the cosA angle. then do cos-1 to find the angle. then use sine rule= 1/2AB sinC to find the area Hop...

ASKED BY FAITH

MATHS 💯

Increase £14120 by 4%. Give your answer rounded to 2 decimal points?

4% of 14120 = 1.04x14120 = 14684.8

ASKED BY SARAH

MATHS 💯

How do I plot a scatter graph with two sets of dat ?

Generate a graph with x and y. Plot the one set of data then plot the other one in a different colour. I am assuming that you are comparing the two ...

ASKED BY SOPHIE

MATHS 💯

How do you work out what the equation of the parallel line to my=2x+3 and passes through (0,7) is?

If a line is parallel, then the equation of the parallel line will have the same gradient as the original line. In this case, the gradient of then p...

ASKED BY HAFSA

MATHS 💯

Why does magnesium stay a solid over a long period of time?

Magnesium is a metal with a melting point of 1,202 Fahrenheit. So it will stay solid at the room temperature unless heated above the threshold if 1,...

ASKED BY ANNIE

MATHS 💯

How do you work out perimeter?

The perimeter of a shape is essentially just the combined length of its edges, so the simplest way to work out a perimeter is to work out the length...

Find me a tutor

We take your privacy seriously. View our policy.