Question

If a $154,300 house appreciates 4 percent annually, what will it be worth in 2 years?

Answer 1

$166,890.88 is what it will be worth in 2 years. For each year it appreciates, simply multiply by 1.04. 

Answer 2

The house will be worth $166890.88 in 2 years.

Explanation:

Formula for growth function:
`A=P(1+r)^t` , where
`P=` Initial value,
`A=` Final value,
`r=` Rate of growth and
`t=` Time duration.

Here,
`P= \$154300, r=4\% = 0.04` and
`t= 2` years.

So,

`A= 154300(1+0.04)^2 = 154300(1.04)^2 = 154300(1.0816)=166890.88`

So, the house will be worth $166890.88 in 2 years.