Question

In hot markets, houses tend to appreciate about 8% each year. If you bought a house for $250,000 and then sold it 5 years later, how much profit would you expect to make (round to the nearest dollar)?

Answer 1

$367,332 would be the cost after 5 years of appreciation.

Answer 2

$117,322

Explanation:

y=250000(1.08)^x

5=x

y=250000(1.08)^5

don't forget to subtract 250,000!!

y=367,332.0192-250000

y=$117,322 rounded to the nearest dollar

:)