Adrian found a nice house today that is selling for $150,000.Assuming an inflation rate of 5 percent in the local real estate market,how much will this house sell for in five years?
A)$187,500
B)$191,442
C)$204,650
D)$157,500

Question

Quizplus · Accepted Answer

To calculate the future value of the house in 5 years, we'll use the formula FV = PV x (1 + i)n, where FV is the future value, PV is the present value, i is the inflation rate, and n is the number of years.

Plugging in the values, we get: 
FV = $150,000 x (1 + 0.05)5
FV = $150,000 x 1.27628 
FV = $191,442

Therefore, the best choice is B. The future value of the house in 5 years is expected to be $191,442.

Adrian Found a Nice House Today That Is Selling for $150,000.Assuming