Question

A property currently valued at 450,000 expected to appreciate 8% each year for the next three years what will be its appreciate in value at the end of this period?

Answer 1

$566870.4

Explanation:

We are told in the question that:

A property currently valued at 450,000 expected to appreciate 8% each year for the next three years.

It's appreciated value after 3 years is calculated as:

Appreciated value = Current value ( 1 + rate of appreciation)^t

Current value = $450,000

Rate = 8% = 0.08

Time = 3 years

Appreciated value = $450,000( 1 + 0.08)³

$450,000 × (1.08)³

Appreciate value = $566870.4