What will an $110,000 house cost 4 years from now if the price appreciation for homes...

Question

Question

What will an $110,000 house cost 4 years from now if the price appreciation for homes over that period averages 4% compounded annually?

business finance

Answer 1

Answer #1

The future value is computed by using the below mentioned formula:

Future value = Present value (1 + r )ⁿ

= $ 110,000 ( 1 + 0.04 )⁴

= $ 128,684.44 Approximately

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Answer 2

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