Question

the housing prices in pangea are decreasing by 2% each year. at the beginning of this year, the average house cost $180,000. what will the average house cost after 10 years?

Answer 1

The average house cost after 10 years would be  $147,073.11.

What will be the average house cost after 10 years?

The cost of house is reducing with the passage of time. This means that the cost of house in 10 years would be cheaper than it is today.

The formula that can be used to determine the cost of a house in 10 years is:

FV = P (1 - r)^n

• FV = Future value
• P = cost of a house today
• R = rate of decline
• N = number of years

180,000 ( 1 - 0.02) ^10

180,000 x 0.98^10 = $147,073.11

To learn more about future value, please check: brainly.com/question/18760477

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