Get an answer in 5 minutes

Ask a question to our educators
MATHS

# 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?

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 Ahmed
·

897 students helped

## Similar Maths questions

Maths

What is 5h:33min to fraction

## What is Q&A on Scoodle?

At Scoodle we understand that everyone learns in a different way. Some people learn through practice, using essays and notes; others prefer video lessons to watch and learn, some just need help with a specifically hard question, while some learn best 1-on-1 tutoring sessions. At Scoodle we cater for all types of learning styles and needs. From GCSE Maths video lessons to A-level English essays and specialist educators in every subject - we’ve got you covered.

Scoodle has helped over 131,000 students so far

Need help with Maths?

Getting expert help from a tutor is a great way to improve your Maths grades.

## Discover learning resources by tutors

Learn Maths with Video Lessons
1hr 28m · 8 videos
Paja Kruzikova
·

696 students helped

GCSE Maths - Numbers
28m · 3 videos
Iqbal Lokman
·

1.5k students helped

1hr 32m · 9 videos
Paja Kruzikova
·

696 students helped

GCSE Maths - Ratios
56m · 6 videos
Paja Kruzikova
·

696 students helped

GCSE Maths - Algebra A
1hr 14m · 7 videos
Paja Kruzikova
·

696 students helped

GCSE Maths - Algebra B
1hr 27m · 9 videos
Paja Kruzikova
·

696 students helped

GCSE Maths - Algebra C