Question

Write an equation that represents the situation. Then answer the question.

Samantha buys a house for $350,000. The value of the house increases by 3% each year. What is the value of the house after 7 years?

Answer 1

Using this equation, we can plug in t = 7 to find the value of the house after 7 years:

V = 350,000(1 + 0.03)^7
V = 350,000(1.225043)
V = $428,261.51

Therefore, the value of the house after 7 years is $428,261.51.