What will a $190,000 house cost 8 years from now if the price appreciation for homes over that period averages 7 percent compounded annually? The future house of the cost will be $_____ (URGENT!)

[tex]\text{Hello there!}\\\\\text{Use the appreciation formula to find the future cost of the house:}\\\\A=P(1+r)^t\\\\\text{P = principal}\\\\\text{r = rate}\\\\\text{t = time}\\\\\text{Plug in data from question and solve:}\\\\A=190,000(1+0.07)^8\\\\A=190,000(1.07)^8\\\\A=190,000(1.7181861798319201)\\\\A=326,455.374\\\\\text{Round to the nearest hundredths place}\\\\\boxed{\$326,455.37}[/tex]

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ajeigbeibraheem ajeigbeibraheem · Answer 2 · 2021-10-05T11:19:09+02:00

The future cost of the house will be $326,455.3742

From the given information:

The principal rate P = $190000
The number of years n = 8 years
Interest Rate (r) = 7 % = 0.07 which is compounded annually

For an interest rate that is compounded annually, the formula for calculating the amount of the future cost of the house can be represented as:

[tex]\mathbf{A = P(1+r) ^n}[/tex]

where;

A = amount of the future cost of the house

∴

[tex]\mathbf{A = 190000(1+0.07) ^8}[/tex]

[tex]\mathbf{A = 190000(1.07) ^8}[/tex]

[tex]\mathbf{A = 190000(1.71818618)}[/tex]

A = $326,455.3742

Therefore, we can conclude that the future cost of the house will be $326,455.3742

Learn more about interest rates here:

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