Question

Greg buys a home for $328,500. His home is predicted to increase in value 4% each year.

What is the predicted value of his home in 30 years?
(Points : 3)
$994,878
$1,003,716
$1,065,456
$1,158,324

Answer 1

increasing by 4% means its value is multiplied by 1.04

do that 30 times

or preferably use the power 30

Answer 2

ok i did that and got 31.2

Answer 3

no it's not times 30 - it's 'to the power 30

Answer 4

1.04x1.04x1.04x1.04.......30 times

= 1.04^30

Answer 5

ok i got 24201.4323555

Answer 6

@MrNood is that it

Answer 7

no

initial value = $328,500

after 1 year = $328,500 * 1.04
after 2 years = $328,500 *1.04*1.04

then you need to do that 30 times (= multiply by 1.04^30)

Answer 8

im sooo confused

Answer 9

each year its value increases
so each year you multiply its value by 1.04

if oyu do that 30 times it is 1.04*1.04*1.04......
is the same as 1.04^30

can oyu work out 1.04^30 on your calculator?

Answer 10

yeah so i just do 328500 * 1.04 but do it 30 times

Answer 11

i got C

Answer 12

well you could do thiat - but surely the subject you are studying is 'powers' like squared, cubed etc.

there is a better way than doing it 30 times

1.04 * 1.04 *1.04.... 30 times
is the same as\[1.04^{30}\]

there is a way of calculating that directly on your calculator

Answer 13

ik i did it to the power okay i have another question like this one but the numbers are different its 15% so do i do the same thing

Answer 14

Rising by 15% is the same as multiplying by 1.15

do that for the number of years...

Answer 15

okay thanks