SOLUTION: The Kwan family purchased their house in 2010 for $100,000. If the value of real estate increases at a rate of 10% per year, how much would their house be worth in 2025?

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Question 1120188: The Kwan family purchased their house in 2010 for $100,000. If the value of real estate increases at a rate of 10% per year, how much would their house be worth in 2025?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
f = p * (1 + r) ^ n

f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods.

formula becomes:

f = 100,000 * (1 + .10) ^ (2025 - 2010)

simplify to get f = 100,000 * (1.10) ^ 15

solve for f go get f = 147,724.8169

that's what the house is worth in 15 years at 10% a year compounded annually.