Question

At the start of 2014 lucy's house was worth ?200000. The value of the house increased by 5% each year. Work the value of the house at the start of 2017

Answer 1

Value of house in 2017 = 231525$

Step-by-step explanation:

At the start of 2014 worth of Lucy's house = 200000$

Rate of increase of the value of the house = 5% = 0.05

Value of house in 2015 = 200000+0.05*200000 = 210000$

Value of house in 2016 = 210000+0.05*210000 = 220500$

Value of house in 2017 = 220500+0.05*220500 = 231525$

Number of years in between 2014 and 2017 = 2017 - 2014 = 3 years.

Value of house in 2017
`=200000*1.05^3=231525$`