Answer to Question #136375 in Financial Math for Kamogelo

Question

you bought a house for R90 000. the value of your house appreciate at 10% per year. how much is your house worth after 1 year and 3 years?

Answer 1

value of the house after 1 year=$initial value\times(1+\frac{r}{100})^n$

$= 90000\times(1+\frac{10}{100})^1$

$= 90000\times1.1$

$=R99000$

value of the house after 3 years =$initial value \times(1+\frac{r}{100})^n$

$= 90000\times(1+\frac{10}{100})^3$

$= 90000\times1.331$

$=R11979$