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denpristay [2]
3 years ago
9

The Greens bought a condominium for $110,000 in 2010. If its value appreciates at an average rate of 6% per year, what will the

Mathematics
1 answer:
timama [110]3 years ago
6 0

Answer:

$147,205

Step-by-step explanation:

We are given;

Initial value of the Condominium as $110,000

The rate of appreciation as 6%

Time from 2010 to 2015

We are required to determine its value in 2015.

Using the appreciation formula;

N = N₀ (1+r/100)^n

Where N is the new value and N₀ is the original value

R is the rate of appreciation

n is the time taken

Therefore;

New value in 2015 = $110,000 × (1 + 6/100)^5

                               = $110,000 × 1.06^5

                               = $147,204.81

                              = $147,205

Therefore, the value of condominium in 2015 will be $147,205

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