Question

Sheryl purchased a plot of land for $32,500. The land appreciates about 4.9% each year. What is the value of the land after eleven years?

Answer 1

Appreciates means increases.

Appreciation formula:

Future value = starting value x (1 + interest rate) ^ time.

Future value = 32,500(1+0.049)^11

Value in 11 years = $55,006.46