Becky is 18 and would like to buy a house when she is 36. What is the discount factor for today's prices if the housing values increase 6% per year? (1 point)

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16-05-2017
Mathematics

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Becky is 18 and would like to buy a house when she is 36. What is the discount factor for today's prices if the housing values increase 6% per year? (1 point)

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Travii Travii · Answer 1 · 2017-05-16T00:28:50+02:00

Travii Travii

16-05-2017

you need to find the amount of years between now and when she wants to buy a home. 36-18= 18. then you take 18 and multiply is by %6. 18x%6 or 18x.06 =108% or 1.08.

The discount prices for today's housing values compared to 18 years from now with a 6% increase per year would be 108% discount.

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