Answer:
In 2020 building price is $ 887761
Step-by-step explanation:
Time = 2020 - 2010 = 10 years
In 2011 building price = 375000 × [tex]\frac{9}{100}[/tex] + 375000 =$408750
In 2012 building price = 408750 × [tex]\frac{9}{100}[/tex] + 408750 =$445537.5
In 2013 building price = 445537.5 × [tex]\frac{9}{100}[/tex] + 445537.5 =$485635.88
In 2014 building price = 485635.88 × [tex]\frac{9}{100}[/tex] + 485635.88 = $529343.11
In 2015 building price = 529343.11 × [tex]\frac{9}{100}[/tex] + 529343.11 = $576983.99
In 2016 building price = 576983.99 × [tex]\frac{9}{100}[/tex] + 576983.99 =$628912.55
In 2017 building price = 628912.55 × [tex]\frac{9}{100}[/tex] + 628912.55 =$685514.68
In 2018 building price = 685514.68 × [tex]\frac{9}{100}[/tex] + 685514.68 = $747211
In 2019 building price = 747211 × [tex]\frac{9}{100}[/tex] + 747211 =$814459.99
in 2020 building price = 814459.99 × [tex]\frac{9}{100}[/tex] + 814459.99 =$887761.38 ≈ $887761
Second method
Total time(t) = 10 years
Rate(r) = 9%
Principal value = $375000
Now,
selling price (in 2020) = principal value [tex](1+\frac{r}{100}) ^{t}[/tex]
= 375000 [tex](1+\frac{9}{100} )^{10}[/tex] = $887761.38 ≈$887761
