Question

Suppose you inherited a house that was purchased in 1950 for 20,000. It is now 2015 and the value of the house has increased by approximately 5% each year what is the house worth now round to the nearest dollar

Answer 1

Answer:

I think the house would now costs $85,000

Step-by-step explanation:

First, I multiplied by how many years between 1950 to 2015 and 5 to get 325.

Next, I divided 20,000 by 100 to get 200 to find 1% of 20,000.

Then, I multiplied 325 by 200 to get 65,000

Finally, I added 20,000 to 65,000 to get 85,000

So, I guess/answer is $85,000

If I was wrong, then just say, "Sorry, but that was incorrect."

Answer 2

Answer:

$476798

Step-by-step explanation:

2015-1950= 65 years

Initial price= $20000

Price increase= 5% yearly

Current price= $20000*(1+0.05)^65= $476798