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

FV= $274,909.8

Explanation:

Giving the following information:

Present value (PV)= $160,000

Interest rate (i)= 7%

Number of periods (n)= 8 years

To calculate the future value (FV) of the home, we need to use the following formula:

FV= PV*(1+i)^n

FV= 160,000*1.07^8)

FV= $274,909.8