The initial value of building is $1,456,000. After one year the value of the bui

usagirl007A

usagirl007A

Answered question

2021-09-06

The initial value of building is $1,456,000. After one year the value of the building is $1,405,040. What exponential dunction models the expected value of the building? Estimate the value of the building after 5 years.

Answer & Explanation

averes8

averes8

Skilled2021-09-07Added 92 answers

Initial value = $1456000
After 1 year, value = $1405040
Let v is the value.
v=ABt
v(a)=1456000A=1456000v=1456000Bt
v(1)=140500401405040=1456000B(1)B=0.965
v=1456000(0.965)t valve after t years
after t=5 years
v=1456000(0.965)t=$1218422.59

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