Question

Tracy purchased a building for $209,350. The land appreciates about 4.5% each year. What is the value of the land after 15 years?

Answer 1

Future Value = $405,151.38

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FV = PV * (1 + R) ^ N

FV = $209,350 (1.045) ^ 15 = $405,151.38

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PV = $209,350

R = 4.5%

N = 15 years

Explanation: