What would be the depreciated value of a $12,000,000 apartment building after five years at a depreciation rate of 2.5% per year?

To determine the depreciated value of the apartment building after five years at a depreciation rate of 2.5% per year, it's essential to apply the concept of straight-line depreciation.

Starting with the original value of the apartment building, which is $12,000,000, the rate of depreciation per year is calculated by multiplying the original value by the annual depreciation rate. In this case, 2.5% of $12,000,000 is $300,000. This amount represents the value by which the building decreases each year.

Over a span of five years, the total depreciation would be the annual depreciation ($300,000) multiplied by the number of years (5). Thus, after five years, the total depreciation amounts to $1,500,000.

To find the depreciated value after this period, subtract the total depreciation from the original value:

$12,000,000 - $1,500,000 = $10,500,000.

This result reflects the value of the apartment building after five years, making it clear that this is the accurate calculation of its depreciated worth.