Question

Tamara purchased a building for $114,750. The land appreciates about 2.3% each year. What is the value of the land after 11 years?

Answer 1

P(1+r)^x
same thing, but it's i+r inside the bracket rather than 1-r, because the value is appreciating

Answer 2

1+r*

Answer 3

i'm soo confused!

Answer 4

value of the land after 11 years = \[P(1+r)^x\]

with P being your initial value( 114750)
r is your rate the value increases each year as a decimal(0.023)
x is the number of years (11)

Answer 5

so plug these values in, and you should get your answer

Answer 6

114750((1+0.023)^11)

Answer 7

how can it be 29 031 if the value appreciates?

Answer 8

you should get 147361.71

Answer 9

ah, you're correct