Question

The formula s = C * (1 + r) ^ 1 models inflation, where C=the value today, r= the annual inflation rate (in decimal form), and s = the inflated value years from nowthe inflation rate is % how much will a house now worth $73,000 be worth in 25 years? Round your answer to the nearest dollar !

Answer 1

The house will be worth approximately $125,546 in 25 years.

Step-by-step explanation:

To calculate the inflated value of a house in 25 years, we can use the formula s = C * (1 + r) ^ t, where C is the value today, r is the annual inflation rate, and t is the number of years. In this case, the value today is $73,000. If we assume an annual inflation rate of 2.5% (0.025 in decimal form), we can calculate the value in 25 years as follows:

s = 73,000 * (1 + 0.025) ^ 25

s = 73,000 * 1.025 ^ 25

s ≈ $125,546.04

Therefore, the house will be worth approximately $125,546 in 25 years.