1.) 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

1.)	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?

anonymous · Answer

I=PRT

anonymous · Answer

I=220,000*3%(or .03)*7years=46,200

anonymous · Answer

Add that to 220,000 and what do you get?

tkhunny · Answer

NO, no...  This is Compound!  $220000*(1.03)^{7}$

No Simple Interest on this one.