Question

The Greens bought a home for $110,000 in 2015. If its value appreciates at an average rate of 6% each year, what will the value be in 2020? Round to the nearest cent..

A- $147, 204.81
B- $145, 492.71
C- $129, 427.22
D- $184, 877

I'm guessing it's B, but I'm probably totally wrong :)

Answer 1

The answer is B ($147204.81)

Explanation:

$110000 x 1.06^5 = $147204.81 (or B)