condos in westminster go up in value by 7% each year. if the romero familys condo is now worth $193,030…

condos in westminster go up in value by 7% each year. if the romero familys condo is now worth $193,030, what will it be worth in 10 years?\nif necessary, round your answer to the nearest cent.

condos in westminster go up in value by 7% each year. if the romero familys condo is now worth $193,030, what will it be worth in 10 years?\nif necessary, round your answer to the nearest cent.

Answer

Explanation:

Step1: Identify compound growth formula

The formula for compound annual growth is $A = P(1 + r)^t$, where:

  • $P$ = present value, $r$ = annual growth rate, $t$ = time in years, $A$ = future value.

Step2: Plug in given values

$P = 193030$, $r = 0.07$, $t = 10$ $A = 193030 \times (1 + 0.07)^{10}$

Step3: Calculate growth factor

First compute $(1.07)^{10} \approx 1.967151357$

Step4: Compute future value

$A = 193030 \times 1.967151357 \approx 379719.23$

Answer:

$379719.23$