Question

Ben Collins plans to buy a house for $225,000. If that real estate is expected to increase in value by 7 percent each year, what will its approximate value be seven years from now?

Answer 1

A=P(1+i)^{n}

Where P would be 225,000

i = interest in % (put decimal in the right place)

n = # of years, which is 7 in this question.

Plug the numbers into your calculator and you are good to go.

Answer 2

I am not understanding this. my answers is coming back incorrect still