Answer:
The value of a condonium in 2010 is 680000.
Step-by-step explanation:
It is given that the value of a condonium in Singapore appreciates by 15%.
Value of the condonium in 2012 = $899300
The general exponential growth function is
[tex]y=a(1+r)^t[/tex] .... (1)
where, a is initial value, r is growth rate and t is time in year.
In the given problem,
Initial year = 2012
Initial value = $899300
Growth rate = 15% = 0.15
Substitute a=$899300 and r=0.15 in equation (1).
[tex]y=899300(1+0.15)^t[/tex]
[tex]y=899300(1.15)^t[/tex] ... (2)
We need to find the value of a condonium in 2010.
[tex]2010-2012=-2[/tex]
Substitute t=-2 in equation (2).
[tex]y=899300(1.15)^{-2}[/tex]
[tex]y=\dfrac{899300}{(1.15)^{2}}[/tex]
[tex]y=680000[/tex]
Therefore, the value of a condonium in 2010 is 680000.
