Question

2) The value of a house appreciates 5% per year.How much is the house worth after 6 yearsif its current worth is Rs. 15 Lac. [Given :(1.05)' = 1.28, (1.05)0 = 1.34]​

Answer 1

Answer:

2010000 Rs.

Step-by-step explanation:

The value of the house increases by 5% per year in a compound rate.

The current value of the house is 1500000 Rs.

We have to calculate, what will be the value of the house after 6 years.

Now, the below formula gives the final value of the house.

$FV=P(1+\frac{r}{100} )^{t}$ .... (1)

Where FV is the final value of the house.

P is the value of the house at present.

r is the rate of compound interest and

t is the time for which the present value compounded.

Now, we have, P=1500000 Rs.

r=5% and t=6 years.

So, using formula (1), we get,

$FV=1500000(1+\frac{5}{100} )^{6}$

⇒$FV=1500000(1.05)^{6}$

⇒FV=1500000(1.34)

⇒FV=2010000 Rs.

(Answer)