<span><span><span><span>A house is valued every year. The building is appreciating at an average annual rate of 7%. Therefore, every year the value of the house is increasing. Start Year </span>
<span> End Year </span>
</span>
<span>
1995
<span> 96,000.00 </span>
<span>
1.07 </span>
<span> 102,720.00 </span>
</span>
<span>
1996
<span> 102,720.00 </span>
<span>
1.07 </span>
<span> 109,910.40 </span>
</span>
<span>
1997
<span> 109,910.40 </span>
<span>
1.07 </span>
<span> 117,604.13 </span>
</span>
<span>
1998
<span> 117,604.13 </span>
<span>
1.07 </span>
<span> 125,836.42 </span>
</span>
<span>
1999
<span> 125,836.42 </span>
<span>
1.07 </span>
<span> 134,644.97 </span>
</span>
<span>
2000
<span> 134,644.97 </span>
<span>
1.07 </span>
<span> 144,070.11 </span>
</span>
<span>
2001
<span> 144,070.11 </span>
<span>
1.07 </span>
<span> 154,155.02 </span>
</span>
<span>
2002
<span> 154,155.02 </span>
<span>
1.07 </span>
<span> 164,945.87 </span>
</span>
<span>
2003
<span> 164,945.87 </span>
<span>
1.07 </span>
<span> 176,492.08 </span>
</span>
<span>
2004
<span> 176,492.08 </span>
<span>
1.07 </span>
<span> 188,846.53 </span>
</span>
<span>
2005
<span> 188,846.53 </span>
<span>
1.07 </span>
<span> 202,065.79 </span>
</span>
<span>
2006
<span> 202,065.79 </span>
<span>
1.07 </span>
<span> 216,210.39 </span>
</span>
<span>
2007
<span> 216,210.39 </span>
<span>
1.07 </span>
<span> 231,345.12 </span>
</span>
<span>
2008
<span> 231,345.12 </span>
<span>
1.07 </span>
<span> 247,539.28 </span>
</span>
<span>
2009
<span> 247,539.28 </span>
<span>
1.07 </span>
<span> <u> 264,867.03 </u> <u> </u>Boyce's home is valued at $264,867.03 at the end of 2009. Or it can be valued using the Future Value formula: FV = (1+r)^n * PV PV = 96,000 r = 7% n = 15 years FV = (1 + 0.07)</span></span></span></span>¹⁵ x 96,000 FV = (1.07)¹⁵ x 96,000 FV = 2.759 x 96,000FV = 264,864