A house on the market was valued at $252,000. After several years, the value decreased by 16%. By how much did the house's value decrease in dollars? What is the current value of the house?
To find out how much the house's value decreased in dollars, we need to calculate 16% of its initial value.
Step 1: Calculate 16% of $252,000
To calculate this, multiply 16% (or 0.16 as a decimal) by $252,000:
16% * $252,000 = $40,320
Therefore, the house's value decreased by $40,320.
Step 2: Calculate the current value of the house
To find the current value of the house, we subtract the decrease in value from the initial value.
Current value = Initial value - Decrease in value
Current value = $252,000 - $40,320 = $211,680
Therefore, the current value of the house is $211,680.