The Appreciation of the house was resolved by applying the appreciation formula which took in Starting cost of the house, the rate and the Period
The final Value is $457827.76
Give Data
Cost of House = $135,200
Rate = 5%
Time = 25 years
Starting value = $135,200
Appreciation rate = 5%
Period = 25 years
Final value =??
Final Value = Starting value * (Appreciation rate + 1)^period
Substituting our given Data We have
Final Val = 135,200 * (5/100 + 1)^25
Final Val = 135,200 * (0.05 + 1)^25
Final Val = 135,200 * (1.05)^25
Final Val = 135,200 *3.3863
Final Val = $457827.76
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Let us calculate 5% of $135,200
Amount in increment = 5/100*135,200
Amount in increment = 0.05*135,200
Amount in increment =$6760
This means that every year
