Staceyc5079idn
Answered

IDNLearn.com: Your trusted platform for finding reliable answers. Join our platform to receive prompt and accurate responses from experienced professionals in various fields.

PLEASE HELP!!!!!
In 2012 a home was purchased for $185,000. It is expected that the home will increase in value 1.5% each year over the next 30 years. What is the home's value in 2030?
(leave answer in terms of money)

Sagot :

Semsee45idn

Answer:

$289,169.84 (to the nearest cent)

Step-by-step explanation:

Compound interest is based on the principal amount and the interest that accumulates on it in every period.

Compound Interest = P (1 + r)^n

where P = principal amount, r = annual interest rate (as a decimal), n = term, in years​

So for this problem:

P = 185000

r = 1.4 ÷ 100 = 0.015

n = 30

Therefore,  

Compound Interest = P (1 + r)^n

                                = 185000 x (1 + 0.015)^30

                                = 185000 x (1.015)^30

                                = 289169.8408...

                                = $289,169.84 (to the nearest cent)

We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Discover insightful answers at IDNLearn.com. We appreciate your visit and look forward to assisting you again.