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Lapatulllka [165]
3 years ago
13

3. A new house was purchased in 1990 for $175,000.

Mathematics
1 answer:
brilliants [131]3 years ago
3 0
<h3>Answer:   $655,430.67</h3>

===============================================

Work Shown:

A = P*(1+r)^t\\\\A = 175,000*(1+0.045)^{30}\\\\A = 175,000*(1.045)^{30}\\\\A \approx 175,000*3.74531813453687\\\\A \approx 655,430.673543952\\\\A \approx 655,430.67\\\\

The home's value in 2020 is approximately $655,430.67 assuming that the rate of inflation is kept at 4.5% per year.

Note that for the r value, I used the decimal form of 4.5% (so you'll move the decimal point 2 spots to the left).

Also, the timespan from 1990 to 2020 is 2020-1990 = 30 years, which is why I used this for the t value.

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