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Marta_Voda [28]
3 years ago
10

Value of peters house has risen 20% a year for the last three years. If the value of peters home three years ago was $120 thousa

nd what is the value now
Mathematics
1 answer:
notka56 [123]3 years ago
8 0

Answer:

The value now = $207,360

Step-by-step explanation:

Rate of increase = 20% per year = 20/100 = 0.2 per year

value 3 years ago = $120,000

interest at year 1:

20% of 120,000

= 0.2 × 120,000 = 24,000

Value at the end of year 1

= initial value + interest

= 120,000 + 24,000 = $144,000

In year 2:

20% of 144,000

= 0.2 × 144,000 = 28,800

Value at the end of year 2:

144,000 + 28,800 = $172,800

In year 3

0.2 × 172,800 = 34,560

Value at the end of year 3:

34,560 + 172,800 = $207,360

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