Question
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?
Solutions
Expert Solution
Information provided:
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.
jeff jeffy answered 2 years agoRelated Solutions
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