Question

Edgar purchased a home for $182,100 to home appreciates about 3.5% each year what is the value of the home after 12 years

Answer 1

the value of the home after 12 years =$275,165.60

Explanation:

To find value of appreciation after 12 years

We apply exponential growth formula

`y=a(1+r)^x`

Where a represents the initial amount (purchased amount)

a= 182,100

r = rate of interest ( appreciation percentage) = 3.5% = 0.035

x represents the time period= 12 years

Plug in all the values

`y=a(1+r)^x`

`y=182100(1+0.035)^12`

y= 275165.6025027724

y=$275165.60