Question

The Martins bought a house this year for $300,000. If the value of the house rises 4% each year, what will be the approximate value of the house in 15 years?

Answer 1

I believe it’s 30,180,000

First do 4% -> 0.04x15=0.6
0.6+100=100.6x300,000

But then again I’m not too sure so double check

Answer 2

Answer: the approximate value of the house in 15 years is 540283

Explanation:

If the value of the house rises 4% each year, then the growth rate is exponential. We would apply the formula for exponential growth which is expressed as

A = P(1 + r)^t

Where

A represents the value of the house after t years.

t represents the number of years.

P represents the initial value of the house.

r represents rate of growth.

From the information given,

P = $300,000

r = 4% = 4/100 = 0.04,

t = 15 years

Therefore

A = 300000(1 + 0.04)^15

A = 300000(1.04)^15

A = 540283 to the nearest whole number