Question

A couple purchased a home for $650, 000. At the end of each year, the value of the home appreciates 2%.

What is the value of the home ten years after the purchase?
Round your answer to the nearest dollar.

Answer 1

`\qquad \textit{Amount for Exponential Growth} \\\\ A=P(1 + r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\dotfill &650000\\ r=rate\to 2\%\to (2)/(100)\dotfill &0.02\\ t=\textit{elapsed time}\dotfill &10\\ \end{cases} \\\\\\ A = 650000(1 + 0.02)^(10) \implies A = 650000( 1.02 )^(10)\implies A \approx 792346`