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4) You have a property that was purchased on your behalf in 1982 for $80,000. It...

4) You have a property that was purchased on your behalf in 1982 for $80,000. It has appreciated at a rate of 8%. What is it worth today?

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Answer #1
Calculation of property's today's worth i.e. in the year 2018
We can use future value of sum formula to calculate this value.
Future value = P x (1+r)^n
Future value = property's today's worth = ?
P = Property's purchase cost = $80000
r = appreciation rate per year = 8%
n = no.of years from 1982 to 2018 = 36
Future value = 80000 x (1+0.08)^36
Future value = 80000 x 15.96817
Future value = 12,77,453.75
Property's today's worth = $12,77,453.75
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