Ask Question
18 November, 21:24

Emily would like to buy a house that is currently on the market at $175,000, but cannot afford it right now. However, she thinks that she would be able to buy it after 3 years. If the expected inflation rate as applied to the price of this house is 5% per year, what is its expected price after three years?

+5
Answers (1)
  1. 18 November, 23:41
    0
    The expected price after 3 years is $202584.38

    Explanation:

    Future Value = Cashflow * (1+i) ^n

    FV = 175000 * (1.05) ^3

    FV = $202584.38
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Emily would like to buy a house that is currently on the market at $175,000, but cannot afford it right now. However, she thinks that she ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers