Question

Use this formula to find the value of a house with appreciation: A = V (1+r)Y

When Henry bought his house for $135,700, he was told that it would appreciate at a rate of five percent per year. If this remains true, how much will his house be worth in four years?

Answer 1

`A=\$164,944.20`

Explanation:

we know that

`A=V(1+r)^(Y)`

In this problem we have

`r=5\%=0.05`

`V=\$135,700`

`Y=4\ years`

substitute in the formula and solve for A

`A=\$135,700(1+0.05)^(4)=\$164,944.20`