Shelby purchased a plot of land for $27,500. The land appreciates about 2.9% each year. What is the value of the land after nine years?

$21,101.13

$35,568.95

$34,677.50

$28,103.94

Question

Shelby purchased a plot of land for $27,500. The land appreciates about 2.9% each year. What is the value of the land after nine years?

 $21,101.13

 $35,568.95

 $34,677.50

 $28,103.94

johnweldon1993 · Answer

so we have the formula

V = Vi (1 + r)^t

Vi is initial value
t is time
r is rate (in decimal form)

can you plug your numbers into this?

johnweldon1993 · Answer

so lets take it step by step

what is the initial value?

johnweldon1993 · Answer

you might be busy....or having a mental block with this....so I'll do it out step by step so you may reference it for future use

V = Vi (1 + r)^t

Vi is initial value = 27,500
t is time = 9 years
r is rate (in decimal form) .029

so

V = 27,500 (1 + .029)^9

this equates to 35568.95

anonymous · Answer

thank you so much, I was having amental block wth this actually, taking me step by step helped me break free from it, thanks :)

johnweldon1993 · Answer

anytime! glad I could help :)