Question

in 1990, the value of a home is $170,000. Since then, its value has increased 5% per year. what is the approximate value of a home in 1993?

Answer 1

value of home in 1991= 105% of 170000

value of home in 1992= 105%×105% of 170000

value of home in 1993= 105%×105%×105% of 170000

=$196,796.25