Question

You inherited land that was purchased for $30,000 in 1960. The value of the land increases by approximately 5% per year. What will be the approximate value of the land 61 years later in 2021? * 1 point

Answer 1

$121,500

Explanation:

If the value increases by 5% every year, then in 61 years it will increase by

5% * 61 years = 305%

301% of %30,000 is $91,500

$(30,000 + 91,500)

= $121,500