Question

suppose homes in a big city increase in value 13very year. how much will a home that cost $150,00 be worth three years later?

Answer 1

The home that originally cost $150,000 will be worth $213,900 three years later.

Step-by-step explanation:

To find the value of the home three years later, we need to calculate the increase in value each year. Since the home value increases by 13% every year, we can use the formula:

Final Value = Initial Value * (1 + Rate of Increase)

Plugging in the values:

Final Value = $150,000 * (1 + 0.13)^3

Final Value = $150,000 * 1.13^3

Final Value = $150,000 * 1.426

Final Value = $213,900