Real Estate Math
A $400,000 home depreciates 4% per year using straight-line depreciation over 25 years. What is the value after 10 years?
A$240,000✓ Correct
B$280,000
C$320,000
D$204,000
Explanation
Annual depreciation = $400,000 × 4% = $16,000/year. Total depreciation after 10 years = $16,000 × 10 = $160,000. Value after 10 years = $400,000 - $160,000 = $240,000.
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