Answer:
the worth of the house today is $392,000
Step-by-step explanation:
in 1995 --------- $200,000
and its appreciates by 4% yearly
so by 2019 the house will be
firstly we subtract 2019 from 1995 to know how many years the house has appreciated for
2019 - 1995 = 24years
therefore to get the total % the house has appreciated for we multiply the year by 4%
24 * 4% = 96%
so to get the appreciated value we multiply 96% by the initial amount of the house
96% * $200,000 = $192,000
therefore the worth of the house at present will be the initial amount plus the appreciated value
$200,000 + $192,000 = $392,000
Answer:
$533,167
Step-by-step explanation:
From the question,Mark bought a house in 1995(25 years ago more or less) for $200,000.
His house has appreciated four percent every year since he bought it.
How much is his house worth today
Let P = price of the house in 1995 or initial amount paid for the house
r = percent it appreciates each year or the growth rate
and n = number of years of appreciation( in this case 25 years since we are in 2020)
= P*(1+r/100)^n
or for this particular example of exponential growth
200,000×[(1+4/100)^25]
= 200000×2.6658...6
= 533,167.3
= $533,167
