Question

The Smith's built a house in 2013 for $150,000. If its value appreciates at an average rate of 6% per year, what will the value be in 2020?

Group of answer choices

Answer 1

Step-by-step explanation:

Principal Amount = $150,000

Rate of appreciation per year = 6%

Appreciated amount = $150,000×6/100

= 6×1500 = $9,000 per year

in 7 years(2020) , the appreciated amount becomes = $9000×7yrs

= $63,000

Thus the value in 2020 = $150,000+$63,000

= $213,000