can you give me the answer

Question

the davies bought an apartment for $75,000. Assuming that the value of the apartment will appreciate at most 4% a year, how much will the apartment be woth in 3 years? Use the formula V= P(1+r)use the formula V=P(1+r)ⁿ

Answer 1

Dominick, we know that 4% of 75000 is 75000(.04) = 3000. If we add the 3000 to 75000, we now have 104% of 75000.

 

The next year, we'll find 4% of 78000 and add it on, etc. It's going to look something like 75000(1.04)(1.04)...

 

Thus our formula.

 

V = 75000(1 + .04)³

 

Plug that into your calculator for an answer.