Question 622296
Hi, there--
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We are given the formula
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{{{S=C*(1+r)^t}}}
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where C = the value today,
R = the annual inflation rate, and 
S = the inflated value t years from now. 
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Find the inflated value S, when 
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R = 5% 
C = $780,000
t = 3 years
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First, convert 5% to a decimal representation. 5% = 0.05
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Substitute the known values into the formula and solve for S.
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{{{S=C*(1+r)^t}}}
{{{S=780000*(1+0.05)^3}}}
{{{S=780000*(1.05)^3}}}
{{{S=780000*1.157625}}}
{{{S=902947.5}}}
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I the context of this problem, S=902947.5 means that the inflated value of the house is $902,947.50. We are asked to round to the nearest dollar. Rules vary when the cents are exactly 50. I usually round up. Therefore the inflated value of the house os $902,948.
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Hope this helps! Feel free to email if you'd like me to explain any part in more detail.
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Ms.Figgy
math.in.the.vortex@gmail.com