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If a house is purchased at $240,000, what is the predicted value of the house in 12 years if it appreciates at a rate of 4% per year? Round to the nearest cent, if necessary. (Hint: The formula for appreciation is P(1+r)^t where p is the principal or initial amount, r is the yearly rate of appreciation expressed as a decimal, and is
the time in years.)
A. $3,777,644.65
B. $147,050.34
c$1,360,653.90
D. $384,247.73

 Apr 10, 2020
 #1
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Using your formula:  P(1 + r)t

with P = 240 000

        r = 0.04

        t = 12

--->   240000(1 + 0.04)12  =         

 Apr 10, 2020

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