Question

Greg buys a home for $328,500. His home is predicted to increase in value 4% each year. What is the predicted value of his home in 30 years?

Answer 1

Answer:

It is 1,065,456

Step-by-step explanation:

Answer 2

The initial value of the Greg`s home: $328,500. If his home is predicted to increase in value 4% each year, that means that the value will rise 1.04 times every year.
The predicted value after 30 years:
$328,500 * ( 1 + 0.04 ) ^30 = 
= $328,500 * 1.04^30 = 
= $328,500 * 3.2434 = 
= $1,065,456.
Answer: The predicted value of his home in 30 years is $1,065,456.