Question

A house purchased last year for 16000 is now worth 192000 assuming that the houses value continues to appreciate at the same rate each year what is the value of the house two years from now

Answer 1

Answer: The value of the house 2 years from now is $276,480.

Option (C) is correct.

According to the question,

Cost of house last year = $  160000

Cost of house at present = $ 192000

The increase in the price of the house is calculated by finding the difference between the prices in two consecutive years.

Increment in cost = $ (192000-160000) =$ 32000

The rate of increment can be calculated by dividing the increment by the original price and then multiplying it by 100%.

Rate of increment = 32000/160000 * 100 =20%

Thus, the value of the house 2 years from now is calculated as:

=192000(1+20/100)(1+20/100)

=192000*120/100*120/100

= $ 276480

Step-by-step explanation: