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?
A) 3.33 years
B) 2.48 years
C) 3.09 years
D) 2.97 years
E) 2.08 years

Question

Quizplus · Accepted Answer

The formula for depreciation is: Final Value = Initial Value * (1 - rate)^time. Plugging in the values: $64,800 = $67,900 * (1 - 0.015)^time. Solving for time gives approximately 3.09 years.

Some Time Ago, Tracie Purchased Two Acres of Land Costing