Question

At the start of 2014 Lucy's house was worth £200,000.

The value of the house increased by 5% every year.

Work out the value of her house at the start of 2017.

Answer 1

220500

Explanation:

You can find this by turning the equation into an exponential equation. We can do this by writing y=200000×1.05^x

x represents the years since 2014

since it has been 3 years you plug in 3 for x. This gives you 200000×1.05^3.

Which simplifies to 200000×1.1025

Finally you end up with $220500