Question

If the average value of a house increases 10% per year, how much will a house costing $120,000 be worth in 10 years? Round to the nearest dollar.

Answer 1

Value = Starting Price × ( 1 + rate )^years

Value = 120,000 × ( 1 + .10 )^10

Value = 120,000 x (2.5937424601)

Value = 311,249.095212

Value = 311,249.

Answer 2

Thank you! we are doing sequences, so when I saw this question, i was confused on what to do. Thanks again.