Question

How much will the house be worth?

Answer 1

Given:

`S=C(1+r)^t`

Where:

• S is the inflated value t years from now

,

• r is the rate

,

• C is the present value.

Let's solve for S, when:

• r = 6% = 0.06

,

• C = $73,000

,

• t = 12

Input values into the equation and solve for S:

`S=73000(1+0.06)^(12)`

Solving further:

`\begin{gathered} S=73000(1.06)^(12) \\ \\ S=73000(2.012196472) \\ \\ S=146890.34\approx146890 \end{gathered}`

herefore, the house will be worth $146890

NSWER:

$146,890