Question

Ben Collins plans to buy a house for $220,000. If that real estate is expected to increase in value by 3 percent each year, what will its approximate value be seven years from now?

Answer 1

The equation to calculate this compounding value is:\[220,000\times(1+.03)^{7}\]
Can you find the answer?

Answer 2

226,200

Answer 3

\[(1+0.03)^{7}=1.229873855\]
When multiplied by $220,000 the result is $270,572 to the nearest dollar.

Answer 4

Thanks kropot72

Answer 5

You're welcome:)