Answer:
the value of the new home after 12 years of increasing at 5% per year is $237,044.05.
Explanation:
To find the value of the new home after 12 years of increasing at 5% per year, we can use the following formula for compound interest:
A = P(1 + r/n)^(n*t)
where:
A = the final amount (value of the home after 12 years)
P = the initial amount (sale price of the home)
r = the annual interest rate (5%)
n = the number of times the interest is compounded per year (assuming annual compounding, n = 1)
t = the number of years
Plugging in the given values, we get:
A = $132,000(1 + 0.05/1)^(1*12)
= $132,000(1.05)^12
= $132,000(1.795856)
= $237,044.05
Therefore, the value of the new home after 12 years of increasing at 5% per year is $237,044.05.