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

£231,525

Explanation:

In this question you have to do compound interest.

First Year:

5/100× £200,000

= £10,000

Second Year:

5/100×£210,000

= £10,500

Third Year:

5/100×£220,500

= £11,025

£200,000+£10,000+£10,500+£11,025

= £231,525

2017= £231,525