Answer: The total percentage loss would be 67%.
Step-by-step explanation:
Since we have given that
Rate of decline each year = 20%
Number of years = 5
We need to find the total percentage loss in value of the house at the end of 5 years.
So, Total percentage loss would be
[tex]1-(1-\dfrac{r}{100})^5\\\\=1-(1-\dfrac{20}{100})^5\\\\=1-(\dfrac{4}{5})^5\\\\=1-(0.8)^5\\\\=0.67\\\\\approx 67%[/tex]
Hence, the total percentage loss would be 67%.
