You purchase a home for $200,000 that you expect to appreciate 6% in value on an annual basis. How much will the home be worth in ten years?

Question

Quizplus · Accepted Answer

To calculate the future value of the home, we can use the formula:
FV = PV x (1 + r)^n
where FV is the future value, PV is the present value, r is the annual growth rate, and n is the number of years.

Plugging in the values, we get:
FV = $200,000 x (1 + 0.06)^10
FV = $200,000 x 1.791
FV = $358,120

Therefore, the home will be worth $358,120 in ten years.

You Purchase a Home for $200,000 That You Expect to Appreciate