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| Math Central | Quandaries & Queries |
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Question from Abeth, a teacher: At the end of every year, the owners of a building which costs 2, 500, 000 pesos deducts 15% from its carrying value as estimated at the beginning of the year. find the estimated value at the end of 30 years. |
At the end of each year the owners deduct 15% of the value the building had at the beginning of the year and hence at the end of the year the value is 85% of the value the building had at the beginning of the year. Thus the value at the end of the first year is 0.85 × 2,500,000 pesos. This then is the value of the building at the beginning of the second year.
What is the value of the building at the end of the second year?
What is the value of the building at the end of the third year?
What is the value of the building at the end of the thirtieth year?
Penny | ||
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