Question

The price of a new home is $350,000. The value of the home appreciates 2% each year. How much will the home be worth in 10 years? Even the exponential function in order to solve the problem would be great!

Answer 1

The worth of home in 1 0 years is $371422.8

Explanation:

We are given

The price of a new home is $350,000

so, P=350000

The value of the home appreciates 2% each year

r=2%=0.02

t=10 years

We can use formula

`A=P(1+r)^t`

where

A is the amount after t years

now, we can plug values

and we get

`A=350000(1+0.02)^(3)`

`A=371422.8`

So, the worth of home in 1 0 years is $371422.8