Question

Hana bought a house two years ago costing £210,000. House prices in her region are expected to increase by 2.3% per year, correct to two significant figures.
Pls help !!

Answer 1

Answer:

New price of house = £219,771 (Approx)

Step-by-step explanation:

Given:

Old price of house = £210,000

Rate of increase = 2.3% = 0.023

Number of year = 2

Find:

New price of house

Computation:

New price of house = Old price of house[1+r]ⁿ

New price of house = 210,000[1+0.023]²

New price of house = 210,000[1.023]²

New price of house = £219,771 (Approx)