Final answer:
To find the value of the condo in 8 years at a 10% annual increase, the formula for compound interest was used, resulting in a future value of approximately $256,031.47.
Step-by-step explanation:
The question is asking how much the value of a condo in Georgetown will increase in 8 years if it appreciates at a rate of 10% per year and its current value is $120,000. To calculate this, we use the formula for compound interest which is A = P(1 + r)^n, where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), and n is the number of years the money is invested or borrowed for.
In this case, P = $120,000, r = 10% or 0.10, and n = 8 years. Plugging these values into the formula, we get:
A = 120000(1 + 0.10)^8
To calculate the value of the condo after 8 years, we need to compute the expression: A = 120000(1.10)^8.
After evaluating this expression, the future value of the condo is determined to be $256,031.47.