if angelas $98,760 home appreciates three percent a year, will she have enough appreciation to try to sell…

if angelas $98,760 home appreciates three percent a year, will she have enough appreciation to try to sell the home for a $15,000 profit in five years?\n\nyes\n\nno

if angelas $98,760 home appreciates three percent a year, will she have enough appreciation to try to sell the home for a $15,000 profit in five years?\n\nyes\n\nno

Answer

Explanation:

Step1: Use compound - interest formula for appreciation

The formula for compound - growth of the value of the home is $A = P(1 + r)^t$, where $P$ is the initial value, $r$ is the annual growth rate as a decimal, and $t$ is the number of years. Here, $P=$98760$, $r = 0.03$, and $t = 5$.

Step2: Calculate the future value of the home

$A=98760\times(1 + 0.03)^5=98760\times1.03^5$. $1.03^5=1.03\times1.03\times1.03\times1.03\times1.03\approx1.159274$. $A = 98760\times1.159274\approx114539.9$.

Step3: Calculate the appreciation amount

The appreciation amount is $A - P$. $114539.9-98760 = 15779.9$.

Answer:

yes