A property is worth 1,200,000 and in the housing market properties go up 7% annually. Given the 7% rate, find out what the house will be worth in 10 years.

Question

Using the formula A = Ao (±) r t/h

Where A represents the Final Amount, Ao represents the original amount, r represents the common ratio, t represents the time, and h represents the period that each takes place. (I am unsure what h is supposed to represent in this formula)

What would the steps be like for this question

Answer 1

$2,360,581.63 value in 10 years at 7%

1,200,000(1.07)^10

usual formula is

A=Ao(1+r/n)^nt

where r = rate of interest

t= years

n= compounding periods per year

your formula seems to be

A=Ao(1+rh)^ht

where h=1/n = the time when compounding occures