In: Finance

# What will a $190,000 house cost 5 years from now if the price appreciation for homes... What will a$190,000 house cost 5 years from now if the price appreciation for homes over that period averages 7% compounded annually?

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Present value= $190,000 Time= 5 years Interest rate= 7% The question is solved by calculating the future value. Enter the below in a financial calculator to compute the future value: PV= -190,000 N= 5 I/Y= 7 Press the CPT key and FV to compute the future value. The value obtained is 266,484.83. Therefore, the house will cost$266,484.83 in 5 years from now.

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