Question

The value of Peter's house has risen 10% a year for the last 3 years. If the value of Peter's home 3 years ago was $100,000, what is the value now?

Answer 1

whats 10% of $100,000?

Answer 2

10000

Answer 3

good!
thats the increased revenue for a year

Answer 4

After the 1st year : total value is $100,000 +$10000 =$110,000
now take 10% of this $110,000 for the revenue in second year.

Answer 5

\[value(t)=100,000(1.10)^t\]t is in years