HELP TO MAKE SURE WORK IS CORRECT PLEASE!!!
2 answers:
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Answer:
A) 0.0194
B) 1.94%
C) $ 170,000
Step-by-step explanation:
Value of house in 1992 = P = $ 120,000
Value of house in 2007 = S = $ 160,000
Time difference from 1992 to 2007 = 15 years
Part A)
The formula of compound interest is:
P is the original amount i.e. $ 120,000
t is the time in years which is 15 years
S is the amount after t years which is $ 160,000
r is the annual growth rate
Using the values, we get:
Thus, the annual growth rate is 0.0194
Part B)
In order to convert a decimal to percentage, simply multiply the decimal by 100.
So, 0.0194 in percentage would be 1.94%
Part C)
We have to find the value of house in 2010 i.e. after 18 years. So t =18
Using the values in the formula, we get:
Rounded to nearest thousand dollars, the value of the house would be $ 170,000