Question

How much is House A worth after two years? Round your answer to the nearest dollar.

Answer 1

Answer:

see below

Step-by-step explanation:

Take the original value times the appreciation and add the original value

Do this for each year

House A

year 1:

 new value = 125260+ 125260* .05

                    =125260 +6263

                     =131523

year 2:

 new value = 131523+131523* .05

                    131523+6576.15

                         138099.15

Nearest dollar  138099

House B

year 1:

 new value = 120160+ 120160* .06

                    =120160 +7209.60

                     =127369.6

year 2:

 new value = 127369.60+127369.6* .05

                    127369.60+7642.18

                         135011.78

Nearest dollar  135012

Answer 2

Answer:

A: $138,099

B: $135,012

Step-by-step explanation:

A: growth rate: (100+5)/100 = 1.05

125260 × 1.05² = 138,099.15

B: growth rate: (100+6)/100 = 1.06

120160 × 1.06² = 135,011.776