Question

You bought a house for $110,000 in 2010 if its value increases at an average rate of 6% per year what would the value be in 2045

Answer 1

$845,469.55

Explanation:

`p\%=(p)/(100)\\\\100\%+6\%=106\%=(106)/(100)=1(6)/(100)=1.06\\\\2011:\\\$110,000\cdot1.06=...\\2012:\\(\$110,000\cdot1.06)\cdot1.06=\$110,000\cdot(1.06)^2=...\\2013:\\(\$110,000\cdot(1.06)^2)\cdot1.06=\$110,000\cdot(1.06)^3=...\\\vdots\\2045:\qquad(2045-2010=35)\\\$110,000\cdot(1.06)^(35)\approx\$845,469.55`