question 1\n2 pts\njeff purchased a home five years ago. if it appreciated 5.6% annually and is worth…

Explanation:

Step1: Identify the compound - growth formula

The compound - growth formula for the value of an asset is $A = P(1 + r)^n$, where $A$ is the final amount, $P$ is the initial amount (purchase price), $r$ is the annual growth rate as a decimal, and $n$ is the number of years. We need to solve for $P$, so we can rewrite the formula as $P=\frac{A}{(1 + r)^n}$.

Step2: Convert the percentage to a decimal and identify the values

The annual growth rate $r = 5.6%=0.056$, the number of years $n = 5$, and the current value $A=$104196$.

Step3: Substitute the values into the formula

$P=\frac{104196}{(1 + 0.056)^5}$. First, calculate $(1 + 0.056)^5=(1.056)^5\approx1.319079$. Then, $P=\frac{104196}{1.319079}\approx79005.00$.

Answer:

$79005.00$