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If you buy a house for $150,000 and anticipate that the market value of the home will increase at 5 percent a year, how much will the house be worth in 14 years?

Respuesta :

The house will be worth $296,989.70 after 14 years.

The future worth of the house is computed as

= Present worth x (1 + rate of increase)^time

Given,

= 150,000 x (1 + 5%)^14

= $296,989.70

The present value formula is PV=FV/(1+i)n, where you divide the future value FV by a factor of 1 + I for each period between the present and future dates. Input these numbers in the present value calculator for the PV calculation: The future value sum FV. A number of time periods (years) t, which is n in the formula.

Learn more about problem-solving here: https://brainly.com/question/13818690

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