Question

carly bought a new house for 125,000. the value of the house appreciates approximately 3.5% each year. what will be the value of the house after 10 years?

Answer 1

Answer:

 

Step-by-step explanation:

Given Carly bought a new house for 125,000. the value of the house appreciates approximately 3.5% each year. what will be the value of the house after 10 years?

We know that future value = P V (1 + r)^t  r = 3.5 /100 = 0.035

                                         = 125000 (1 + 0.035))^10

                                     = 125000(1.035)^10

                                =   125000 x 1.4105

                     = 176324.85

So the value of the house after 10 years will be 176324.85

Answer 2

Answer:

The value of the house after 10 years = Rs. 176324.85

Step-by-step explanation:

Formula for compound interest

A = P[1 + r/100]^N

A - Amount

P - Principle amount

N - Number of years

R - Rate of interest

It is given that,

Carly bought a new house for 125,000. the value of the house appreciates approximately 3.5% each year

To find value of house after 10 years

P = 125000

R = 3.5%

N = 10 years

A = P[1 + r/100]^N

= 125000[1 + 3.5/100]^10

= 125000[1.035]^10 =125000* 1.41

= 176324.85