Question

The value of a house increases by 10% every year. Its present value is 880000. 1.what will be 2 years later?

Answer 1

the present value of house is 880000

the value of house increases by 10%

after 1st year the value of house=10/100*880000+880000

                                                    =88000+880000

                                                     =968000

the next year the value of house=10/100*968000+968000

                                                      =96800+968000

                                                      =1064800

the value of house after 2 years is 1064800

Answer 2

Given :

The value of a house increases by 10% every year. Its present value is 880000

To Find :

what will be 2 years later?

Solution:

Present value of house = Rs.880000

rate of increase = 10% =0.1

Value of house after 1 year = 880000+0.1(880000)=968000

Value of house after 2 years = 968000+0.1(968000)=1064800

Hence The value of house after 2 years is Rs.1064800