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

anually increases 6,600

3% is equivalent to 3/100

and 3% of 220,00 is 6,600

Answer 2

i know theres most likely a formula ( that i can't think of right now) but you can most definitely do this the longer way.
3% = .03
so you would do 220,000 * 0.03 = blank
and whatever you get plus 220,000 is one year to equal new total.
first year total * .03 = new blank
new blank plus 1st year total = 2nd year total and so on til you get to 7 years

Answer 3

it says annual increase by each year tho, so i dont think you can just divide and multiply like that.

Answer 4

yes I read your statement ; it makes sense bc if the value increased each year then the 3% of the 2nd year would not be the same as the year before .