Question

The value of a house that was purchased 20 years ago has been appreciating by 1.2% each year since it was purchased. If the house is currently valued at $456,996, what was it worth when it was purchased?

Answer 1

I believe it would have been $347,316.95 at the time of purchase.

1.2% of 456996 is 5483.952

$5483.952 \times 20 = 109679.04$

So:

$456996 - 109679.04 = 347316.95$