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

anonymous · Answer

This is a question where you use an exponential equation.

Exponential equations are always in the form y=a(b)^x
a = initial value (when x = 0)
b = growth rate

So for this question your equation should look like this

y=220000(1.03)^x 

Plug in 7 for x.

anonymous · Answer

Thank you