question archive The formula S=C(1+r) squared t models? inflation, where C=the value? today, r=the annual inflation rate? (in decimal? form), and S=the inflated value t years from now
The formula S=C(1+r) squared t models? inflation, where C=the value? today, r=the annual inflation rate? (in decimal? form), and S=the inflated value t years from now
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The formula S=C(1+r) squared t models? inflation, where C=the value? today, r=the annual inflation rate? (in decimal? form), and S=the inflated value t years from now. If the inflation rate is 2?%, how much will a house now worth ?$193,000 be worth in 15 ?years? Round your answer to the nearest dollar.
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The house will worth 259,753$ after 15 years .
Step-by-step explanation
Given S = C(1+r)^t
Where S=the inflated value t years from now
C =The value? today
r=the annual inflation rate?
t = time in years
Given C =193,000$
r = 2% =2/100 =0.02
t = 15 years
On substituting all values we have
S =193000(1+0.02)^15
= 193000(1.02)^15
= 193000(1.345868)
=259752.589$
= 259753$
The house will worth 259,753$ after 15 years .
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