Question

Over time, the value of the property at 397 West Lake Street increased by 275%. If the initial value of the property was P, which expression represents the property’s current value?
375P


275P


3.75P


2.75P

Answer 1

Answer: Third option is correct.

Step-by-step explanation:

Since we have given that

Initial value of the property = P

Rate of growth = 275%

So, we need to find the property's current value:

We will use "compound interest ":

$Amount=P(1+\dfrac{r}{100})^t\\\\Amount=P(1+\dfrac{275}{100})^1\\\\A=P(1+2.75)\\\\A=3.75P$

Hence, Third option is correct.