antonio lopez plans to buy a house for $281,000. if that real estate is expected to increase in value by 8…

antonio lopez plans to buy a house for $281,000. if that real estate is expected to increase in value by 8 percent each year, what will its approximate value be six years from now? note: do not round intermediate calculations. round your final answer to the nearest whole number.

antonio lopez plans to buy a house for $281,000. if that real estate is expected to increase in value by 8 percent each year, what will its approximate value be six years from now? note: do not round intermediate calculations. round your final answer to the nearest whole number.

Answer

Explanation:

Step1: Identify the compound - growth formula

The formula for compound growth is $A = P(1 + r)^n$, where $A$ is the future value, $P$ is the present value, $r$ is the rate of growth per period, and $n$ is the number of periods.

Step2: Identify the values of $P$, $r$, and $n$

$P=$281000$, $r = 0.08$ (since 8%=0.08), and $n = 6$.

Step3: Substitute the values into the formula

$A=281000\times(1 + 0.08)^6$. First, calculate $(1 + 0.08)^6=1.08^6\approx1.586874$. Then, $A = 281000\times1.586874$. $A\approx446911.694$.

Step4: Round the final answer

Rounding to the nearest whole number, $A\approx446912$.

Answer:

446912