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?

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