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Compound interest/depreciation
A building worth Rupees 133,100 is constructed on land worth Rs 72,900. After how many years will the value of both be the same if the land appreciates at 10% p.a. and the building depreciates at 10% p.a.?
Explanation and memory cue
The building depreciates at 10% per annum, so its value after t years is 133,100 × (0.9)^t. The land appreciates at 10% per annum, so its value after t years is 72,900 × (1.1)^t. Setting these equal and solving for t gives approximately 4 years.