Question

Moe bought a home for $200,000 in 2012. Every year the city appraiser has said Moe's home has increased in value 5% What it Moe's home worth in 2019?

a. $230,000
b. $281420
c. $268,019
d. $269972​

Answer 1

Given :

Moe bought a home for $200,000 in 2012. Every year the city appraiser has said Moe's home has increased in value 5% .

To Find :

What it Moe's home worth in 2019.

Solution :

We know, formula of compound interest is :

`A = P ( 1 + (R)/(100))^n\\\\A = 200000* ( 1 + (5)/(100))^(2019-2012)\\\\A = 200000* ( 1 + (1)/(20))^7\\\\A = \$ 281420.0`

Hence, this is the required solution.