Question

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

The formula's a=v(1+r)^y
So: a=135700(1+5%)^4
Which the outcome is: 164,944

Answer 2

Therefore, The house will worth $164944.20 in 4 years

Explanation:

Cost price of the house at the time of buying = $135700

Now, The price will appreciate at a rate of five percent per year

So, we need to find the total cost after 4 years

The formula to find the appreciated amount after 4 years is given by :

`A=P(1+rate)^(Time)`

`A=135700(1+0.05)^4`

`A=135700* 1.22`

`Amount=\$164944.20`

Therefore, The house will worth $164944.20 in 4 years