Homework Answers
The new home will cost in 10 years for $ 447,712
The explanation is as follows:
The cost of $ 1 increasing annually at theh rate of 6% compounding will become $ 1.7908 after 10 years.
Therefore, the current cost of home $ 250,000 will become $ 447,712 after 10 years when increased at a compunding rate of 6%.
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