SOLUTION: the formula S=C(1+r)^t models inflation, where : a. C=the value today b. r=the annual inflation rate c. S=the inflated value t years from now use this formula to solve th

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: the formula S=C(1+r)^t models inflation, where : a. C=the value today b. r=the annual inflation rate c. S=the inflated value t years from now use this formula to solve th      Log On


   

Question 976223: the formula S=C(1+r)^t models inflation, where :

a. C=the value today
b. r=the annual inflation rate
c. S=the inflated value t years from now
use this formula to solve the following problem:
if the inflation rate is 3 percent, how much will a house now worth 510,000 be worth in 5 years?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Given Info:
C = 510000
r = 0.03
t = 5

S=C%281%2Br%29%5Et
S=510000%281%2B0.03%29%5E5
S=510000%281.03%29%5E5
S=510000%281.1592740743%29
S=591229.777893
S=591229.78

The house will be worth roughly $591,229.78