Question

mr. and mrs. boyce bought a house for 96000 in 1995. real estate values in their area increase approximately 4% each year. what was the value of the house in 2007?

Answer 1

Use this formula:
$P(t) = P_0 (1 + r)^t$
$P(12 years) = (96000) \cdot (1.04)^{12}$
$P(12) = 153699$