Question

The Smiths bought a house worth $400,000. Assuming the house will appreciate 3.2% each year, how much will the house be worth in 20 years? Round to 2 decimal places.

Answer 1

Answer:

$656,000

Step-by-step explanation:

P = 400,000

R = 3.2% each year

T = 20 years

for a quick answer you can do R*T and then multiply it with P then add it to the P

here,

p*r = 3.2%*20= 64% = i

I*P= 64%*400,000 = 64/100 *400,000

= 64 * 4000

= 256000

this plus P = 256,000+400,000

= 656,000

! And thats how rich you can get if you know your maths .

If ya want the usual solution then here it is :

((3.2%*400,000)*20)+400,000

i.e. ((Rate of appreciation * Amount or Principle)+no. of times interest will be applied) + Amount or Principle

simply : ((R*P)+T)+P