Answer:
$138,345
Step-by-step explanation:
This is a compound decline problem, which will be solve by the compound formula:
[tex]F=P(1-r)^t[/tex]
Where
F is the future value (value of house at 2030, 14 years from 2016)
P is the present value ($245,000)
r is the rate of decline, in decimal (r = 4% = 4/100 = 0.04)
t is the time in years (2016 to 2030 is 14 years, so t = 14)
We substitute the known values and find F:
[tex]F=P(1-r)^t\\F=245,000(1-0.04)^{14}\\F=245,000(0.96)^{14}F=138,344.96[/tex]
Rounding it up, it will be worth around $138,345 at 2030
