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?

Answer 1

I=PRT

Answer 2

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

Answer 3

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

Answer 4

NO, no... This is Compound! \(220000*(1.03)^{7}\)

No Simple Interest on this one.