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