Question

Darnell’s house was valued at $134,670 and it appreciated 3 percent per year. What is its value after 2 year? Round to the nearest dollar. A: $8,201 B:$142,871 C:$126,939 D:$277,541

Answer 1

134,670×(1+0.03)^(2)=142,871

Answer 2

Option B is correct.

Explanation:

Given: Value of House, P = $ 134,670

Rate of depreciation, R = 3% per year

Time, T = 2 years ⇒ n = 2

To find: value of house after 2 year that is A.

We know that

`A=P(1-(R)/(100))^n`

`A=134670(1+(3)/(100))^2`

`A=134670*1.0609`

A = 142871.403

A = $ 142871

Therefore, Option B is correct.