Question

The value of Peter's house has risen 20% a year for the last 3 years. If the value of Peter's home 3 years ago was $90,000.00, what is the value now?

Answer 1

$155,520

Explanation:

When the value rises 20%, it is 1.2 times what it was. This has occurred 3 times, so the value is now 1.2³ = 1.728 times what it was.

... $90,000 × 1.2³ = $155,520