yikesjayson
contestada

The Smiths bought an apartment for $78,000. Assuming that the value of the apartment will increase in value 5% a year, how much will the apartment be worth in 6 years? Answer to the nearest penny.

Respuesta :

The value of the apartment in 6 years is $104,527.46.

What is the future value of the apartment?

The value of the apartment appreciates (increase in value) by 6% every year. The formula that can be used to determine the future value of the apartment is:

FV = P (1 + r)^n

Where:

  • FV = Future value
  • P = Present value
  • R = interest rate
  • N = number of years

$78,000(1.05)^6 = $104,527.46

To learn more about future value, please check: https://brainly.com/question/18760477

ajinems

The worth of the apartment after 6 months is =$23,400

Simple interest

The original amount of the apartment(p) = $78,000

The rate of increase of the value of the apartment is(r)= 5%

Time(t) = 6years

But simple interest =

[tex]si = \: \frac{p \times t \times r}{100} [/tex]

[tex]si = \frac{78000 \times 6 \times 5}{100} [/tex]

[tex]si = \frac{2340000}{100} [/tex]

si = $23,400

Therefore, the worth of the apartment after 6 months is =$23,400

Learn more about simple interest here:

https://brainly.com/question/20690803

Otras preguntas