Question 1101325: What will a $150,000 house cost 6 years from now if the price appreciation for homes over that period averages 7% compounded annually? The future cost of the house will be $?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! What will a $150,000 house cost 6 years from now if the price appreciation for homes over that period averages 7% compounded annually? The future cost of the house will be $?
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A(t) = P(1+(r/n))^(n*t)
A(6) = 150,000(1+(0.07/1))^(1*6)
A(6) = 150,000(1.07)^6 = $225,109.55
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Cheers,
Stan H.
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