Question

What will a $120,000 house cost 8 years from now if the price appreciation for homes over that period averages 5% compounded​ annually?

Answer 1

$177,294 based on computed annual interest. Times $120,000 by 1.05 and you'll arrive at 126,000 for year one. For year two times 126,000 again by 1.05 and 132,300. Repeat this equation until you get to year eight and find the value you are looking for.