Question

every year,the value of a condominium in Singapore appreciate by 15% of its value in the previous year.if the value of the condominium was $899300in 2012, find its value in 2010

Answer 1

Answer:

Step-by-step explanation:

In 2012 Condominium = $899300;

Rate, R = 15%

n = 2 because we have to calculate the value before 2 year from 2012 i.e. 2010;

By using the formula of n year ago value of principle;

$\frac{P}{(1-\frac{R}{100} )^{n} }$;

= $\frac{899300}{(1-\frac{15}{100} )^{2} }$;

By solving this we get the value of condominium in year 2010 is $ = 680000

Answer 2

Answer:

The 2010 price is $680,000

Step-by-step explanation:

The 2012 price is $899300, which is inclusive of the appreciation which is 15%

Meaning, this 899300 is ( 100 + 15 ) = 115%

Hence 899300 = 115%

100%?

We cross multiply, to get the price of the commodity in 2011

(899300 × 100) ÷ 115 = 782000

$782000 is the price in 2011

We know that each year the price appreciates. Meaning that this 782000 is inclusive of the appreciation (15%)

Hence 782000 = 115%

100%?

We cross multiply

(782000 × 100) ÷ 115 = 680,000

Therefore the price of the commodity in 2010 is

$680,000