Question

at the start of 2014 lucy's house was worth £200000 the value of the house increased by 5% every year. work out the value of her house at the start of 2017

Answer 1

You first have to find 5% of 200,000gbp in order to find the value of the house for the year 2015.

200,000 x 5/100 = 10,000

200,000+10,000+10,000+10,000=231510

Amount it has increased: 11,025

Explanation:

Answer 2

You first have to find 5% of 200,000gbp in order to find the value of the house for the year 2015.

200,000 x 5/100 = 10,000

Therefore by 2015 the house's value was= 200,000 + 10,000= 210,000

however, you cannot keep adding 10,000 thrice over to find the value of the house for the year 2017 as the amount the value increases by each year will change as it is a percentage difference

value for 2016,

210,000x5/100=10,500

Therefore by 2016 the house's value was= 210,000 + 10,500= 220,500

value for 2017,

220,500x5/100=11,025

Therefore by 2017 the house's value was= 220,500 + 11,025= 231,525gbp