Question

What will be the price of a building after 3 years if it is appreciated by a rate of 15% every year, the current price
being $300,000?
O $456,262.50
O $445,626
$428,877.50
$424,262​

Answer 1

Answer:

What will be the price of a building after 3 years if it is appreciated by a rate of 15% every year, the current price

being $300,000?

O $456,262.50

O $445,626

$428,877.50

$424,262

Answer 2

Given,

Price of the building = $ 300,000 and a appreciation of 15% per year.

To Finds,

The value of building after 3 years.

Solution,

Since the appreciation per year = 15%

The Value of the building at the end of 1 year = $300000(1+\frac{15}{100})$

⇒ $300000(\frac{115}{100}) = 345000$

Thus the value of the building after 2 years = $345000(1+\frac{15}{100})$

⇒ $345000(\frac{115}{100}) = 396750$

Thus the value of the building after 3 years = $396750(1+\frac{15}{100})$

⇒ $396750(\frac{115}{100}) = 456262.50$

Henceforth, the value of the building after 3 years is $456262.50