The Greens bought a condo for $110,000 in 2005. If its value increases at 6% compounded annually, what will the value be in 2020?

Question

asked Apr 4, 2024 85.7k views

1 Answer

Don Vince · Answer 1 · 2024-04-09T08:03:45+0000

Answer:

$264,000

Explanation:

PV = $110,000

i = 6%

n = 15 years

Compound formula:

FV = PV (1 + i)^n

FV = 110,000 (1 + 0.06)^15

FV = 110,000 · 2.40(rounded) = $264,000