Question

At the start of the 2014 Lucy's house was worth 200,000.The value of the house increased by 3% every year. What is the value of the house in 2017.

Answer 1

$182534.5

Explanation:

Step one:

given data

In 2014 Lucy's house was worth 200,000

The value of the house increased by 3% every year

Time period = 3 years

Step two:

let us find the value after 3 years

Year one

value= 200000- 0.03*200000

value= 200000-6000

value= 194000

Year two

value= 194000- 0.03*194000

value= 194000-5820

value= 188180

Year three

value= 188180- 0.03*188180

value= 188180-5645.4

value= $182534.5