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

\[32,500 * (1.049)^{11}\]

Answer 2

u understand how we put the above formula ?

Answer 3

no

Answer 4

ok.. its like this,

32,500 is our original value right, every year its value increases by 4.9 %
so, every year its value increases by what amount ?
can you calculate what is 4.9 % of 32,500 ?

Answer 5

actually you dont have to calculate, just imagine..

Answer 6

idk

Answer 7

hmm you just need to multiply (1+.049) with the original value, to get the new value

Answer 8

ohhhh Okayyy

Answer 9

ok good.. then you need to do the same for 11 years.
so it becomes (1+.049)^11
this term is to be multiplied with the original value, to get the final value. u see ?

Answer 10

oh okay , I get it now. Thanks !

Answer 11

whats the answer you got ?

Answer 12

55006.46

Answer 13

great.. i got the same :)

Answer 14

Thank you soooo much!

Answer 15

yw. .