Answered

Get detailed and accurate answers to your questions on IDNLearn.com. Get step-by-step guidance for all your technical questions from our dedicated community members.

the formula S=C(1 +r)^t models inflation, where C= the value body, r= the annual inflation rate (in decimal form), and S = the inflated value t years from now. if the inflation rate is 3%, how much will a house now worth $163,000 be worth in 15 years? round your answer to the nearest dollar

Sagot :

Since the actual value happens at t=0, then:

[tex]\begin{gathered} 163,000=C(1+0.03)^0 \\ \Rightarrow C=163,000 \end{gathered}[/tex]

Evaluate S(t) at t=15, with C=163,000 and r=0.03 to find the inflated value of the house 15 years later:

[tex]S(15)=163,000\cdot(1.03)^{15}[/tex]

Use a calculator to find a decimal expression for S(15):

[tex]S(15)=253,948.6889\ldots[/tex]

To the nearest dollar, the house will be worth $253,949

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Discover the answers you need at IDNLearn.com. Thank you for visiting, and we hope to see you again for more solutions.