I'm taking a real estate course and brushing up on my math. I'm doing a practice test from my book and this problem has me stumped, and there's no explanation for it in the book.

The value of a house today is $37,500. It has been depreciating (losing value) 2.5% per year. What was the value of the house 10 years ago?

So as I understand it the equation should look like: x-(x0.025(10)=37,500

which breaks down to x-x0.25=37,500

or x minus 25% of x equals 37,500 if I'm not writing it correctly above... Am I right so far? How do I finish this?