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2. Jericho bought a house in 2010 valued at $450,000. The house has appreciated by 5% each year from 2010 to 2019. Find the value of Jericho's house in 2019. (assume 2010 has an x value of 0).

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User Rob Nemeth
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1 Answer

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Answer:

the value of Jericho's house in 2019 is approximately $698,597.60.

Explanation:

To solve this problem, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

where:

A is the final amount (the value of the house in 2019)

P is the initial amount (the value of the house in 2010, which is $450,000)

r is the annual interest rate (which is 5%, or 0.05, in this case)

n is the number of times the interest is compounded per year (which is 1, since the interest is compounded annually)

t is the time period (in years)

Using the formula, we can find the value of Jericho's house in 2019 as follows:

A = P(1 + r/n)^(nt)

= $450,000(1 + 0.05/1)^(1*9)

= $450,000(1.05)^9

= $450,000(1.551328)

= $698,597.60

Therefore, the value of Jericho's house in 2019 is approximately $698,597.60.

User Henriette Harmse
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