Carly bought a new house for $125,000. The value of the house appreciates approximately 3.5% each year. What will be the value of the house after 10 years?

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asked Sep 8, 2016 91.9k views

2 Answers

Thompson · Answer 1 · 2016-09-13T07:21:48+0000

Start with the value of the house and multiply it by 0.035 which represents 3.5%

$125,000 * 0.035 = $4375

$4375 is approximately how much the house appreciates each year

Multiply $4375 by 10 years

$4375*10= $43,750 that is how must the house appreciates in ten years

Now add that to $125,000

$125,000 + $43,750 = $168,750 would be how much the house is worth in 10 years.