SOLUTION: if inflation is 2 percent a year compounded annually what would it cost in 13 years to buy a house currently valued at 75000.00.
Algebra.Com
Question 470885: if inflation is 2 percent a year compounded annually what would it cost in 13 years to buy a house currently valued at 75000.00.
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
if inflation is 2 percent a year compounded annually what would it cost in 13 years to buy a house currently valued at 75000.00.
**
The formula to use: A=P(1+i)^n, A=amount after n periods, P=initial investment, i=interest per period, n=number of periods. This is callled the compound interest formula.
For given problem: A=to be determined, P=75000, i=.02, n=13
A=75000(1+.02)^13
A=75000(1.02)^13
A=97020
ans:
In 13 years it would cost $97020.50 to buy a house currently valued at $75000.00.
RELATED QUESTIONS
if inflation is 8% a year compounded annually, what will it cost in 16 years to buy a... (answered by rfer)
A father is planning a savings program to put his daughter through college.
His daughter (answered by Theo)
Assuming continuous compounding, what will it cost to buy a $35 item in 2 years at the... (answered by stanbon,Alan3354)
A company invest 10,000 today to be repaid in five years in one lump sum at 12%... (answered by jorel1380)
A company invests 10,000 today to be repaid in five years in one lump sum at 12%... (answered by Theo)
A company invests P10,000 today to be repaid in five years in one lump sum at 12%... (answered by Theo)
5-1A. (Compound interest) To what amount will the following investments accumulate?
a.... (answered by solver91311)
At what rate percent will a sum of w 3,125 amount to w 3,645 in 2 years, if
the interest (answered by stanbon)
a piece of machinery depreciates at a fixed rate of 12% per year for 7 years. If the... (answered by ewatrrr)