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Home values in a town have declined 25% per year for each of the past four years. What was the total percentage decrease in home values during the four-year period?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter4: Profitability Analysis

Section: Chapter Questions

Problem 1ACIC

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Home values in a town have declined

25%

per year for each of the past four years. What was the total percentage decrease in home values during the four-year period?

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