Business Studies, asked by aliyyazhar, 23 hours ago

The price of a house is expected to increase by 6% every year. If a house is now offered at RM350,000, find the estimated price of the house after 13 years

Answers

Answered by sammersharma09870
0

Explanation:

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Answered by RvChaudharY50
0

Given :- The price of a house is expected to increase by 6% every year. The house is now offered at RM 350,000 .

To Find :- The estimated price of the house after 13 years ?

Formula used :-

  • F = I[1 + (R/100)]^T
  • F = Final value
  • I = Initial value
  • R = Rate of increase .
  • T = Total time .

Solution :-

from given data we have,

→ Initial value of house = I = RM 350,000

→ Rate of increasing = R = 6% every year

→ Total time = T = 13 years

→ Final value house = Let F .

putting all values in above total formula we get,

→ F = 350000[1 + (6/100)]¹³

→ F = 350000[1 + 0.06]¹³

→ F = 350000[1.06]¹³

→ F = 350000 × 2.133

→ F ≈ RM 746,550 (Ans.)

Hence, the estimated price of the house after 13 years is equal to RM 746,550 .

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