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

Answer 1

Answer:

She possessed the land for 3.14 years.

Explanation:

3Giving the following information:

Present Value (PV)= $67,900

Future Value (FV)= $64,800

Decrease rate (d)= 1.5%

To calculate the number of years passed, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)  

n= ln(64,800 / 67,900) / ln(1.015)

n= -3.14 years

She possessed the land for 3.14 years.