Question

What will a $160,000 house cost 8 years from now if the price appreciation for homes over that period averages ​7% compounded​ annually?

Answer 1

Explanation:

We will use the A=P*(1+r/n)^nt formula

P = 160,000

R = the rate 7%

N= the times compounded. Since it is annually it is 1

T = 8 years

Filling in the information...

A = 160,000 x (1 + .07)^1*8

= 160,000 x 1.07^8

= 160,000 x 1.71818617983

= 274909.788773

Round up as needed.

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