Question

If a $154,300 house appreciates 4 percent annually, what will it be worth in 2 years?

$154,300

$166,891

$200,226

$189,433
1 points
QUESTION 7

If a $178,200 house appreciates 6 percent annually, what will it be worth in 2 years?

$154,300

$166,891

$200,226

$178,200

Answer 1

A) The the Price of house after 2 years is $160,472

B) The price of house after 2 years is $ 200,225.52

Explanation:

Given as :

A) The initial price of house is $154,300

The percentage increase = 4%

The time period = 2 years

So,
`Increase Amount = Initial amount*  ( 1 +(Rate)/(100))^(Time)`

or,
`Increase Amount = $154,300*  ( 1 +(4)/(100))^(2)`

Or,
`Increase Amount = $154,300*  ( 1.04})^(2)`

∴ Increase Amount = $ 160,472

Hence The the Price of house after 2 years is $160,472

B) The initial price of house is $178,200

The percentage increase = 6%

The time period = 2 years

So,
`Increase Amount = Initial amount*  ( 1 +(Rate)/(100))^(Time)`

Or,
`Increase Amount = 178,200*  ( 1 +(6)/(100))^(2)`

Or,
`Increase Amount = $178,200*  ( 1.06})^(2)`

∴ Increase Amount = $ 200,225.52

Hence The price of house after 2 years is $ 200,225.52 Answer