The Smiths bought a new house for $90,000. If the steady annual growth rate is 7.8%, how much will the house be worth after
3 years ?

Respuesta :

Answer:

$ 112 745 .39

Step-by-step explanation:

7.8 % = .078 in decimal

90 000 ( 1 + .078)^3 = 112745.39

Answer:

After 3 years ,the house will worth : $112 745.38968

Step-by-step explanation:

Method 1:

the house will worth after 1 year :

[tex]90000+90000\times \frac{7.8}{100} =97020[/tex]

the house will worth after 2 years :

[tex]97020+97020\times \frac{7.8}{100} =104587.56[/tex]

the house will worth after 3 years :

[tex]104587.56+104587.56\times \frac{7.8}{100} =112745.38968[/tex]

Method 2:

we consider the geometric sequence Un of :

 First term U₀  = 90000

 common ratio q = 1 + (7.8/100) = 1.078

Then

[tex]U_{3}=q^{3}\times U_{0}[/tex]

Then

[tex]U_{3}=(1,078)^{3}\times 90000=112745.38968[/tex]