Question

Find the future value of the home 10 years after you purchased it assuming a 4% interest rate. Use the full purchase price of the home from the previous problem (Question 1) as the principal (or initial value, P in the compound interest formula. Future value of home =$ This "Future value" is the price you will sell the house for after you've owned it for ten years. Now you will answer the question of whether or not you have made or lost money with this investment. You will need several pleces of information in order to answer the question. You will need the amount of your down payment

Answer 1

The future value of the home after 10 years, assuming a 4% interest rate, is $197,352.89.

Step-by-step explanation:

To find the future value of the home after 10 years, we can use the compound interest formula. The formula is: Future Value = Principal × (1 + interest rate)^time. In this case, the principal is the full purchase price of the home, and the interest rate is 4%. Plugging in the values, we get: Future Value = $150,000 × (1 + 0.04)^10. Solving this equation, we find that the future value of the home after 10 years is $197,352.89.