The formula models inflation where C = the value today, r = the annual inflation rate, and S = the inflated value t years from now. If the inflation rate is 3%, how much will a house worth $300,000 be worth in 15 years?
2007-11-24 18:29:01 · 3 answers · asked by damasta_007 1 in Science & Mathematics ➔ Mathematics
S=C(1+r)^15
S=300000 (1+0.03)^15
S=300000 (1.03)^15
$467390.225
Therefore, the house will be worth $467390.26 in 15 years.
2007-11-24 18:41:54 · answer #1 · answered by mysterious_purple_haze 3 · 0⤊ 0⤋
A = P(1 + r)^t
A = $300,000(1.03)^15
2007-11-25 02:41:49 · answer #2 · answered by Helmut 7 · 1⤊ 0⤋
s = c([1 + r]^t)
Worth of house 15 years from now:
= $300,000([1 + 0.03]^15)
= $300,000(1.03^15)
= $300,000(1.5579667)
= $467,390.01
Answer: $467,390.01
2007-11-25 02:42:15 · answer #3 · answered by Jun Agruda 7 · 3⤊ 1⤋