Verified Answer :

W0lf93

We have to determine the value of a house after 10 years. We know that the present value of the house is $125,000 and that the value increases 3.5% each year. Formula is: FV = PV * ( 1 + r )^t, where FV is the future value, PV is the present value, r = 3.5% = 0.035 and t = 10 years. FV = 125,000 *( 1.035 )^10 = 125,000 * 1.4105; FV = $176,324.85 ( $ 176,325 to the nearest dollar ). Answer: The value of the house after 10 years will be $176,325.

Answer:

Value of the house after 10 years is $176325 .

Step-by-step explanation:

The exponential increases function is given by

@@MATH_TOKEN_0@@

Where a is the initial value , r is the rate of interest in the decimal form and t is the time in years .

As given

Carly bought a new house for $125,000. the value of the house appreciates approximately 3.5% each year.

a = $125000

3.5% is written in the decimal form

@@MATH_TOKEN_1@@

= 0.035

r = 0.035

t = 10 years

Put all the values in the formula

@@MATH_TOKEN_2@@

@@MATH_TOKEN_3@@

@@MATH_TOKEN_4@@

y = $ 176325

Therefore the value of the house after 10 years is $176325 .

Related Questions