Carly bought a new house for $125,000. The value of the house appreciates approximately 3.5% each year. What will be the value of the house after 10 years?

Respuesta :

This problem can be solved using the formula for interest which is: F = P (1 + i)^n where:

F = future value
P = principal value
i = interest per year
n = interest period

Since we are already provided with the values of each, direct substitution should be done. This is shown below:

F = P(1 + i)^n
F = 125000(1 + 0.035)^10
F = 176324.85

Therefore, the value of the house after 10 years will be $176,324.85