Question

OnOff

House A $125,260 Appreciates 5% each year
House B $120,160
Appreciates 6% each year
Which house is worth more after two years?

Answer 1

House A

Explanation

For house A:

divide 125,260 by to to find 10%.

10% = 12,526.The you divide this by two to get 5%.

5% = 6,263.Next add the original figure with the 5%. To makes things simpler insted of adding 5% percent twice(since were calculating for two years) just add the 10% to the original figure you get:

125,260 + 12,526= $137,786

For house B:

This is a little different than before. Find ten percent then 5 percent.

10%= 12,016

5%=6,008.Next to find 1% divide the 10% again!

1%-1,201.6,After add the five percent and 1% to find 6%.

6%=7,209.6. Multiply the 6% by 2 to find the price for 2 years.Next add the original number to the 12%.

12%=14,419.2

17,419.2+120,160= $134,579.2

In conclusion:

Compare the prices-

A=$137,786

B=$134,579.2

House A earns more money after two years.

Your welcome,this took me forevever:)))))