Question

Marianne buys a house for $150,000, and the value of the house increases at a rate of 1.2% per year. How much will the house be worth in 10 years?

Answer 1

$169,003.77

Explanation:

The value is compounded each year.
`Amount = P(1 +r)^n " 1.2% = 1.2/100"`

=`150 000(1 +0.012)^10 = $169,003.77`