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amm1812
3 years ago
6

At the start of 2014 Lucy's house was worth ?200000 the value of the house increased by 5% every year work out the value of her

house at the start of 2017
Mathematics
1 answer:
diamong [38]3 years ago
8 0

Answer:

$231525.00

Step-by-step explanation:

We know that the formula to calculate the increase at a certain growth rate is,

V_f=V_i\times(1+i)^n

Where, V_f is the value of house at the start of 2017

V_i is the value of her house in 2014

<em> 'i'  </em>is the rate at which value is increasing

<em>n </em>is the number of years (periods).

From 2014 to 2017 it is 3 years, so <em>n</em> = 3.

Putting the values we get,

V_f= 200000 (1+0.05)^3

V_f= 200000(1.05)^3

V_f= 200000 \times 1.157625

V_f= 231525

So the value of her house at the start of 2017 will be $231525.00

(I have assumed that the valuation is done in dollars).

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