Question

Darnell’s house was valued at $134,670 and it appreciated 3 percent per year. What is its value after 2 year? Round to the nearest dollar. A: $8,201 B:$142,871 C:$126,939 D:$277,541

Answer 1

134,670×(1+0.03)^(2)=142,871

Answer 2

Answer:

Option B is correct.

Step-by-step explanation:

Given: Value of House, P = $ 134,670

           Rate of depreciation, R = 3% per year

           Time, T = 2 years   ⇒ n = 2

To find: value of house after 2 year that is A.

We know that

$A=P(1-\frac{R}{100})^n$

$A=134670(1+\frac{3}{100})^2$

$A=134670\times1.0609$

A = 142871.403

A = $ 142871

Therefore, Option B is correct.