Question

Please help, easy points!

Answer 1

The answer is C. $457,835

Answer 2

Answer:

The value of Brock's house will be $457,835 in 25 years.

Option C is correct.

Step-by-step explanation:

Given: Brock bought his house for $135,200. A local real estate agent predicts that the house will appreciate in value 5% each year.

The value of house increase by 5% every year.

Formula: $FV=PV(1+r)^n$

where,

FV = Future value of house

PV = Present value of house (PV=$135,200)

r = rate of interest (r=0.05)

t = period of mortage (t=25)

Substitute the values into formula and solve for FV

$FV=135200(1+0.05)^{25}$

$FV=135200(1.05)^{25}$

$FV=135200\cdot 3.38635$

$FV=457835$

Hence, The value of Brock's house will be $457,835 in 25 years.