Question

The lee family bought their home for $220,000 this year. The equation V = $220,000(1.038)* can be used to find the value, V, for their home after x years. Which is gonna be the value of the lee family’s home after 5 years?

Answer 1

V=220,000(1.038)^x

when x=5

V=220,000(1.038)^5=265099.83

Explanation:

Answer 2

I assume this V = $220,000 * (1.038) is for one year = $228,360 +(5*1.038) simple interest = V =$228,365.19