The house worth in 23 years is $ 242751
Solution:
The formula that models inflation is given as:
[tex]S = C(1+r)^t[/tex]
Where,
C = the value today
r - annual inflation rate in decimal form
t = number of years from now
Given that,
C = $ 123, 000
[tex]r = 3 \% = \frac{3}{100} = 0.03[/tex]
t = 23 years
Substituting the values in formula,
[tex]S = 123000(1+0.03)^{23}\\\\S = 123000(1.03)^{23}\\\\S = 123000 \times 1.9735\\\\S = 242751.14 \approx 242751[/tex]
Thus the house worth in 23 years is $ 242751
