Question

Q13.Neil bought a house for £235 000In the first year the value of the house depreciated by 4%In each of years 2 and 3 the value of the house increased by 6%Work out the value of the house at the end of year 3

Answer 1

Given: Neil bought a house for £235 000

In the first year the value of the house depreciated by 4%

In each of years 2 and 3, the value of the house increased by 6%.

Required: To find out the value of the house at the end of year 3.

Explanation: Since in first year the value of house depreciated by 4%,

$\text{ New price}=235000-\frac{235000\times4\times1}{100}$$undefined$