Question

you buy a house for $130,000. it appreciates 6% per year. How much is it work in 10 years? exponential growth or decay?

Answer 1

Its worth would be $232,810 in 10 years....

Explanation:

Let P be the price of house today

r = growth rate

n = number of years of appreciation

Then future price can be calculated as:

P*(1+r/100)^n

Plug the values in the formula

130,000(1+0.06)^10

130,000(1.06)^10

$232,810

Therefore its worth would be $232,810 in 10 years....