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NEW QUESTION: 1
The apartment on King-Williams street is an asset that its value is tramping about.
From the year 1973 to 1983 it's value decreased by 16% and from 1983 to 1993 it's value increased by
16%. What is the value of the asset in 1993 if in 1973 it was worth $40,000?
A. $40,000.
B. $36,796.
C. $39,679.
D. $38,976.
E. $38,796.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Be careful, the value of the asset didn't stay the same after the two changes in the value.
In the first 10 years, the value decreased by 16% (40,000 x 0.84 = 33,600).
Then, in the next ten years the value increased by 16% (33,600 x 1.16 = 38,976).
Therefore, the answer is C.


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