Question

Average house prices in Hobart are expected to grow by 8%

per year for the next 5 years. What is the expected average
value of a house in Hobart in 5 years time, to the nearest
dollar, if it is currently valued at $370000?

Answer 1

518000 if it increases 8% per year

Explanation:

8 times 5, because there are 5 years, is 40%

we take 40% out of 370000 and we get 148000 then we add 370000 and 148000 together and we get 518000