Question

Ben Collins plans to buy a house for $65,000. If that real estate property is expected to increase in value 5 percent each year, what would its approximate value be seven years from now?

Answer 1

this can be solved using the formulaF = P( 1 + i)^nwhere F is the future worth of the house boughtp is the orignial price of the housei is the percent increse per yearn is the number of years
F = 65,000 ( 1 + 0.05)^ 7F = $ 91,462 is the value of the house after 7 years