Question

Condos in Georgetown go up in value by 10% each year. If the Sutton family's condo is now worth $120,000, what will it be worth in 8 years? If necessary, round your answer to the nearest cent.

Answer 1

To find the value of the condo in 8 years, use the formula for compound interest: A = P(1 + r)^n. Plugging in the values, the condo will be worth approximately $311,169.99 in 8 years.

Step-by-step explanation:

To find the value of the condo in 8 years, we can use the formula for compound interest:

A = P(1 + r)^n

Where:

• A is the future value of the condo
• P is the present value of the condo
• r is the interest rate (10% as a decimal)
• n is the number of years

Plugging in the values, we have:

A = $120,000(1 + 0.1)^8

Calculating this, we find:

A = $311,169.99

Therefore, the condo will be worth approximately $311,169.99 in 8 years.