7
a
2. Mr. and Mrs. Boyce bought a house for
$175,000 in 1996. Real estate values in their
area increase approximately 5% each year which
are compounded annually. What was the value
of the house in 2002? (yellow)

Respuesta :

Answer:

$234,516.7371

Step-by-step explanation:

A = P (1 + [ r / n ]) ^ nt

A = 175000(1 + [tex]\frac{.05}{1}[/tex])^1(2002-1996)

   = 175000(1.05)^6

   = 175000(1.340095640625)

   = 234,516.7371