Question

Some time ago, Tracie purchased two acres of land costing $67,900. Today, that land is valued at $64,800. How long has she owned this land if the price of the land has been decreasing by 1.5 percent per year? Multiple Choice 3.09 years 2.08 years 3.33 years 2.48 years 2.97 years

Answer 1

S.no.	Years	Original value/ Opening Value	Decrease in value	Balance Value
	A	B=Opening Balance /Balance value at previous year	C= B X 1.5%	D=B-C
1	1	67,900.00	1,018.50	66,881.50
2	2	66,881.50	1,003.22	65,878.28
3	3	65,878.28	988.17	64,890.10
4	4	64,890.10	973.35	63,916.75
		Present Value	(i)	64,800.00
		Value at the end of third year	(ii)	64,890.10
		Balance Excess value	(iii)=(i)-(ii)	90.10
		Decrease in value in forth year	(iv)	973.35
		After reducing excess value	(v)=(ii)=(iii)	64,800.00
		Period of forth year		(90.10/973.35)*365
		i.e. days	(vi)	33.79
		Days in year	(vii)	365/366
		In proportion of year	(viii)=(vi)/(vii)	0.09
		Hence answer is		3.09 years