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In: Finance

You bought your house for $100,000 ten years ago. Home values in your neighborhood have increased...

You bought your house for $100,000 ten years ago. Home values in your neighborhood have increased about 4% a year. Which table would you use to determine the value of your house today?

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Expert Solution

Ans We would use Future Value table to determine the current value of the house. Alternatively, we can calculate the value of the house as follows:

FV = Future Value
PV = Present Value
r = rate of interest
n= no of period
FV = PV (1 + r )^n
FV = 100000*(1+ 4%)^10
FV = 148024.43

jeff jeffy answered 2 years ago
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