Answer:
$476,798
Explanation:
You want to know the value in 2015 of a $20,000 house purchased in 1950 if the value increased at 5% per year, compounded annually.
Compound interest
The value can be found using the compound interest formula.
A = P(1 +r)^t
where P is the principal invested at rate r compounded annually for t years.
For the values in the problem statement, the investment value is ...
A = $20000(1 +0.05)^65 ≈ $476,798
The house is worth $476,798 now.
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