Question

A home value increases at a rate of 2.3% per year. If you purchased a home for 192,300, what would be the value of the home in 10 years? Round to the nearest cent.

Answer 1

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Answer:

$241,399.09

Explanation:

The value is increasing exponentially with a growth factor of 1.023, so it will be ...

v(t) = 192,300×1.023^t

v(10) = 192,300×1.023^10 ≈ 241,399.09

The value is predicted to be $241,399.09 in 10 years.