The value of a building was Ksh.53000000 at the end of 2004 appreciated by 8% in 2005, 19% in 2006 but depreciated by 23% in 2007.


Find its value at the end of year 2006

To find the value of the building at the end of 2006, we need to apply the given appreciation percentages year by year.

1. **Initial value at the end of 2004**:  
   Ksh. 53,000,000

2. **Appreciation in 2005 by 8%**:  
   The new value after 2005 is calculated as:  
   \[
   \text{Value after 2005} = 53,000,000 \times (1 + 0.08)
   \]  
   \[
   = 53,000,000 \times 1.08 = 57,240,000
   \]

3. **Appreciation in 2006 by 19%**:  
   Now we apply the 19% appreciation on the new value (Ksh. 57,240,000):  
   \[
   \text{Value after 2006} = 57,240,000 \times (1 + 0.19)
   \]  
   \[
   = 57,240,000 \times 1.19 = 68,115,600
   \]

Thus, the value of the building at the end of 2006 is **Ksh. 68,115,600**.

Would you like further details or have any questions?

Here are some related questions to expand on the topic:
1. How would the value change if the appreciation percentages were reversed?
2. What would be the value at the end of 2007 after applying the 23% depreciation?
3. How do you calculate compound percentage growth over multiple years?
4. What would be the overall percentage change from 2004 to 2006?
5. How do changes in percentages affect financial planning for property investments?

**Tip**: When applying percentage increases or decreases, multiply by \(1 + \frac{\text{percentage}}{100}\) for increases and \(1 - \frac{\text{percentage}}{100}\) for decreases.

The value of a building was Ksh. 53,000,000 at the end of 2004, appreciated by 8% in 2005, 19% in 2006 but depreciated by 23% in 2007. Find its value at the end of year 2006.

Learn how to calculate the value of a building over multiple years with percentage appreciation and depreciation. Starting with a value of Ksh. 53,000,000 in 2004, this problem shows step-by-step calculations for 8% appreciation in 2005 and 19% appreciation in 2006, resulting in a value of Ksh. 68,115,600 at the end of 2006. Suitable for Grades 9-11 students.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation