The value of Peter's house has risen 10% a year for the last 3 years. If the value of Peter's home 3 years ago was $130,000, what is the value now?

Question

anonymous · Answer

Use the compound interest formula:
$$V=I(1+i)^n$$
Where V is the final value (of the house), I is the initial investment (initial value of the house), i is the interest rate (%change in house price) and n is the time in years.

Substitute all of the information you have into the equation and you should be able to find V. Let me know if you have any further problems and I'll be happy to help.