Ask Question
18 August, 00:11

Ben Collins plans to buy a house for $180,000. If the real estate in his area is expected to increase in value by 1 percent each year, what will its approximate value be seven years from now? Use Exhibit 1-A. (Round your FV factor to 3 decimal places and final answer to the nearest whole dollar.)

+4
Answers (1)
  1. 18 August, 03:51
    0
    The approximate value of the house is 192984

    Explanation:

    I don't know what you mean by "Use Exhibit 1-A" but you can calculate this as follows

    180000 * (1+1%) ^7

    The general formula of cumulative interest is

    A * (1+i) ^n

    A = Amount

    i = interest, in this case 1%

    n = number of periods, in this case, 7
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Ben Collins plans to buy a house for $180,000. If the real estate in his area is expected to increase in value by 1 percent each year, what ...” 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