If the house costs 37500 now and it is depreciating 2.5 % every year, then to find it's value 10 years ago we need to increase the property value which is 37500 by 2.5 % for 10 years and the equation to solve this would be (1+0.025)^10(37500). We do (1+0.025) because we are increasing the value by 2.5 percent. The 10 is the number of years ( it is also the x variable).

the answer is about $48003 and you can check this by depreciating this value by 2.5% for 10 years which will give your initial house value of $37500