Question

At the start of 2014 lucy’s House was worth £200,000. the value of the house increased by 5% every year . Work out the value of her house at the start of 2017That’s the start of 2014 Lucy’s house was worth £200,000 the value of the house increased by 5% every year work out the value of her house at the start of 2017

Answer 1

At start of 2017 house worth = $231,525

Explanation:

To find the new value worth of the house in each year, you add the increase in worth of house in the preceding year and the worth of the house in the preceding year. How do I learn

At start of 2014 house worth = $200,000

At start of 2015 house worth = 2014 house worth + 5% of 2014 house worth

At start of 2015 house worth = $200,000 + 5% of 200,000

= 200,000 + 5/100 * 200,000

= 200,000 + 10,000 = $210,000

At start of 2015 house worth = $210,000

At start of 2016 house worth = 2015 house worth + 5% of 2015 house worth

At start of 2016 house worth = $210,000 + 5% of 210,000

= 210,000 + 5/100 * 210,000

= 210,000 + 10,500 = $220,500

At start of 2016 house worth = $220,500

At start of 2017 house worth = 2016 house worth + 5% of 2016 house worth

At start of 2017 house worth = $220,500 + 5% of 220,500

= 220,500 + 5/100 * 220,500

= 220,500 + 11,250 = $231,525

At start of 2017 house worth = $231,525