The value of a house appreciates 5% per year. How much is the house wo

1.	The value of a house appreciates 5% per year. How much is the house worth after 6 years if its current worth is Rs. 15 Lac.[Given: (1.05)5 = 1.28, (1.05)6 = 1.34]
Answer» The value of a house is Rs. 15 Lac Appreciation rate = 5% = \(\frac5{100}\) = 0.05 Value of house after 1st year = 15(1 + 0.05) = 15(1.05) Value of house after 6 years = 15(1.05) (1.05)⁵ = 15(1.05)⁶ = 15(1.34) = 20.1 lac.

The value of a house appreciates 5% per year. How much is the house worth after 6 years if its current worth is Rs. 15 Lac.[Given: (1.05)5 = 1.28, (1.05)6 = 1.34]

Answer»

The value of a house is Rs. 15 Lac

Appreciation rate = 5% = \(\frac5{100}\) = 0.05

Value of house after 1st year = 15(1 + 0.05) = 15(1.05)

Value of house after 6 years = 15(1.05) (1.05)⁵

= 15(1.05)⁶

= 15(1.34)

= 20.1 lac.