Answer:
Value of house in 2021 = $627,680 (Approx.)
Step-by-step explanation:
Given:
Value of house in 2009 = $200,000
Rate increased per year = 10% annually
Find;
Value of house in 2021
Computation:
Number of year = 2021-2009 = 12 year
Value of house in 2021 = Value of house in 2009[1+Rate increased per year]ⁿ
Value of house in 2021 = 200,000[1+10%]¹²
Value of house in 2021 = 200,000[1+0.1]¹²
Value of house in 2021 = 200,000[1.1]¹²
Value of house in 2021 = 200,000[3.1384]
Value of house in 2021 = $627,680 (Approx.)
