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You purchase a home for $200,000 that you expect to appreciate 6% in value on an...

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?

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Answer #1

Future Value= Present Value x (1+r)n

Present Value of House = $200,000

r=rate of interest =6% or 0.06

n= no of years= 10

Future Value= $200,000 x (1+0.06)10

                        =$200,000 x 1.0610

                         =$200,000 x 1.79084769

Value of house in 10 years = $ 358,169.54

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