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insens350 [35]
1 year ago
5

A property currently valued at $450,000 is expected to appreciate 8ach year for the next 3 years. what will be its appreciated v

alue at the end of this period?is $350,000?
Business
1 answer:
goldfiish [28.3K]1 year ago
3 0

$450,000 x 1.08 x 1.08 x 1.08 = $566,870. The 1.08 is obtained by multiplying 100% by 8% appreciation for 108%. Then multiply that by 1.08 after conversion to a decimal.

Add 1 to the appreciation rate, represented as a decimal, to determine the appreciated value. As an illustration, multiply 1 by 0.08 to get 1.08 for an annual appreciation rate of 8%. Raising the outcome to the nth value, where n is the anticipated number of years Raise 1.08 to the fifth power, or divide it by 5, to determine the appreciated value in the example five years from now. The answer in this case is 1.47.

a property's or other asset's increasing value. The majority of property depreciates, thus it is rather uncommon to talk of a property's appreciated value. Real estate and stocks are two notable exceptions, as real estate usually increases in value over time while securities' value can fluctuate based on market conditions. Capital gains or property taxes may be computed using the increased value.

To learn more about appreciation value from the given link.

brainly.com/question/12724954

#SPJ4

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