Answer:
$147,205
Explanation:
We are given;
Initial value of the Condominium as $110,000
The rate of appreciation as 6%
Time from 2010 to 2015
We are required to determine its value in 2015.
Using the appreciation formula;
N = N₀ (1+r/100)^n
Where N is the new value and N₀ is the original value
R is the rate of appreciation
n is the time taken
Therefore;
New value in 2015 = $110,000 × (1 + 6/100)^5
= $110,000 × 1.06^5
= $147,204.81
= $147,205
Therefore, the value of condominium in 2015 will be $147,205