Calculating the future value of property: 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?

Question

anonymous · Answer

220,000 x .03 (that is three percent) = what. take that answer add repeat the process 7 times.
another option, ( i don't know what grade your in, but if you can do this math it will be easier) 220,000 x (1.03)^7 power, that takes the original cost and multiplies it by the 3 perecent for 7 years.
now, since it also says approx value, your teacher could mean that you could take another short cut. 7 years at 3 percent = 21 percent right? so what is 21 percent of 220,000 that would be .21 x 220,000 + 220,000

ok, i hope you try that out.

800 at 8%, the first year you would have earned 64 dollars, that is 864 at the end of year 1.
year 2, will be 864 x .08, that is 69.12 + the 864 = 933.12, now you keep going. a short cut, take 800 and multiply that by (1.08)^10 power.

anonymous · Answer

my bad!

anonymous · Answer

So, the formula A = Pe^(rt) can be applied here where the variable A is Final, P is initial, r is rate, and t is time.