Question

You and your spouse have narrowed your new home search. The first house is being sold for $154,300 and appreciates 4 percent annually, and the second house is $178,200 and appreciates 6 percent annually. Which house is worth more in five years?

Answer 1

The second house is worth MUCH more after five years.

Answer 2

Answer:

Worth of second house is is more in five years.

Step-by-step explanation:

Cost Price of first house, $P_1$ = $ 154, 300

Rate of appreciation for 1st house, $R_1$ = 4%

Cost Price of Second house, $P_2$ = $ 154, 300

Rate of appreciation for 1st house $R_2$ = 4%

We have to find worth of both houses after 5 years that is T = 5 years

Since, Value of Second house is already greater than first house. Also percentage rate of appreciation is high of second house.

So, After equal Amount of time Worth / value  of second house will be greater than first house.

Therefore, Worth of second house is is more in five years.