Answer:
about $525,900
Step-by-step explanation:
Each year, the value is multiplied by (1 +4%) = 1.04. After 20 years, it will have been multiplied by that value 20 times. That multiplier is 1.04^20 ≈ 2.19112314.
The value of the house in 20 years will be about ...
$240,000×2.19112314 ≈ $525,900 . . . . . rounded to hundreds
Answer: it would be worth $52587 in 20 years.
Step-by-step explanation:
If the value of the house increases at a rate of 4% per year, then the rate is exponential. We would apply the formula for exponential growth which is expressed as
A = P(1 + r/n)^ nt
Where
A represents the value of the house after t years.
n represents the period of increase.
t represents the number of years.
P represents the initial value of the house.
r represents rate of increase.
From the information given,
P = $24000
r = 4% = 4/100 = 0.04
n = 1 year
t = 20 years
Therefore
A = 24000(1 + 0.04/1)^1 × 20
A = 24000(1.04)^20
A = $52587
