Question

Over time, the value of the property at 397 West Lake Street increased by 275%. If the initial value of the property was P, which expression represents the property’s current value?

375P


275P


3.75P


2.75P

Answer 1

3.75P is the correct answer

Answer 2

Answer: Third option is correct.

Explanation:

Since we have given that

Initial value of the property = P

Rate of growth = 275%

So, we need to find the property's current value:

We will use "compound interest ":

`Amount=P(1+(r)/(100))^t\\\\Amount=P(1+(275)/(100))^1\\\\A=P(1+2.75)\\\\A=3.75P`

Hence, Third option is correct.