Question

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

Answer 1

Answer:

231,525

Step-by-step explanation:

At the start of 2014 it was worth 200,000

At the start of 2015 it was worth 200,000 plus the 5% of the 2014 worth

5% of 200,000 is 10,000

So at the star of 2015 the worth was (200,000 + 10000) = 210,000

In 2016 the worth was 210,000 plus 5% of it

The 2016's worth was (210,000 + 10500) = 220,500

The 2017's worth was 220,500 plus 5% of it

The 2017's worth was (220,500 + 11,025) = 231,525