Question

Pete bought a house in 2009 for $200,000.

The value of his house increased by 10%
annually.

Answer 1

Value of house in 2021 = $627,680 (Approx.)

Explanation:

Given:

Value of house in 2009 = $200,000

Rate increased per year = 10% annually

Find;

Value of house in 2021

Computation:

Number of year = 2021-2009 = 12 year

Value of house in 2021 = Value of house in 2009[1+Rate increased per year]ⁿ

Value of house in 2021 = 200,000[1+10%]¹²

Value of house in 2021 = 200,000[1+0.1]¹²

Value of house in 2021 = 200,000[1.1]¹²

Value of house in 2021 = 200,000[3.1384]

Value of house in 2021 = $627,680 (Approx.)