Given:
[tex]S=C(1+r)^t[/tex]
Where:
• S is the inflated value t years from now
,
• r is the rate
,
• C is the present value.
Let's solve for S, when:
• r = 6% = 0.06
,
• C = $73,000
,
• t = 12
Input values into the equation and solve for S:
[tex]S=73000(1+0.06)^{12}[/tex]
Solving further:
[tex]\begin{gathered} S=73000(1.06)^{12} \\ \\ S=73000(2.012196472) \\ \\ S=146890.34\approx146890 \end{gathered}[/tex]
herefore, the house will be worth $146890
NSWER:
$146,890
