Question

A home that was built in 1980 has increased in value at a rate of 5% per year. It was originally sold for $75,000. What was it worth in 2005? Round your answer to the nearest dollar.
In 2005 it was worth $_____

Answer 1

Answer: Your answer would be $168,750

First you need to get 5% of 75,000 which is 3750

Next you have to mutiply 3750 by 25 because 1980 to 2005 is 25 years.

Which will give you 93,750

Then you add 93,750 with 75000 which is what it got sold for and your answer will be $168,750