Question

Peter buys a house that costs $100,000. If the

house loses 5% of its value each year, to the
nearest dollar, what will be the value of the
house after 6 years?
(A) $63,025
(B) $66,342
(C) $69,834
(D) $73,509
(E) $77,378

Answer 1

None of these, it's $70,000.

Explanation:

5% of $100,000 is $5,000

$5,000 · 6 (# of years) = $30,000

$100,000 - $30,000 = $70,000