Answer:
In 2030 Lane & Zack's house be worth $65,739.27.
Step-by-step explanation:
Here, as we know The value of property = $245,000
Rate of depreciation = 4% of its present value
Time = From 2016 to 2030 = 14 years
Now, here: Amount depreciated = -( COMPOUND INTEREST on the value)
Step 1: CALCULATE THE COMPOUND INTEREST on P = $245,000
[tex]A = P(1 + \frac{r}{100} )^t\\\implies A = (245,000)(1 + \frac{4}{100} )^{14} = (245,000)(1 + \frac{4}{100} )^{14}\\=245,000 (\frac{104}{100} )^{14} = 424,260.73[/tex]
or, AMOUNT = $424,260.73
Now, AMOUNT = Compound I + Principal
⇒Compound I = A - P = $424,260.73 - $245,000 =$ 179,260
So, the amount of the house by which house depreciates = $ 179,260
⇒The depreciated value = Actual Value - The depreciated amount
= $245,000 - 179,260 = $65,739.27
Hence, in 2030 Lane & Zack's house be worth $65,739.27.
