If an average home in your town currently costs $300,000, and house prices are expected to grow at an average rate of 5 percent per year, what will an average house cost in 10 years?
A) $450,000.00
B) $483,153.01
C) $488,668.39
D) $507,593.74

Question

Quizplus · Accepted Answer

To find the future value of the house, you use the formula for compound interest: Future Value = Present Value * (1 + rate)^n, where n is the number of years. Plugging in the values: $300,000 * (1 + 0.05)^10 = $488,668.39.

If an Average Home in Your Town Currently Costs $300,000