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Alenkasestr [34]
3 years ago
12

alex buys a home for $276,400. his home is predicted to increase in value 3.5% each year. What is the predicted value of alex's

home in 25 years ?Round your answer to the nearest dollar.
Mathematics
2 answers:
qaws [65]3 years ago
6 0

Answer:

$653,201

Step-by-step explanation:

Formula: P=V(1+r)^y

P = predicted future value of home

V = original value of home

r = rate of appreciation

y = number of years in the future

Now plug the numbers in:

276,400(1+0.035)^25=653,200.91

Then round to nearest dollar:

=$653,201

(I just took the quiz)

Katarina [22]3 years ago
4 0
276400(0.035) = $9674 the equivalent value in dollar for every increase in the house then multiplied by 25. $9674*(25) = $241850 + the current value of Alex's home. $276400+ $241850 = $518250 that would be the value of Alex's home in 25  years. The percentage is (518250-276400)/ 276400 =0.875 *100 = 87.5 % increase in value. I hope this would help.
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