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19 July, 19:36

Parcel of land is sold for 163000, it appreciates at 14% compounded per year. Seller keeps it for 7 years. How much would the seller pay for it?

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  1. 19 July, 20:49
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    Answer: $434, 306.4

    Step-by-step explanation:

    From the question,

    P = $163,000

    R = 14%; 14/100 = 0.14

    T=7 years

    From the formula,

    A = Pr e^t

    A = 163000e^0.14 (7)

    = 163000e^0.98

    = $434,306.4
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