Posted by **Latina** on Sunday, July 12, 2009 at 2:07pm.

If inflation is 6% a year compounded annually, what will it cost in 21 years to buy a house currently

valued at $230,000? Round to the nearest cent.

- math -
**MathMate**, Sunday, July 12, 2009 at 3:35pm
Present value = 230,000

Inflation rate, r = 6% p.a.

Period, n = 21

Future value

= present value * (1 + r)^{n}

You should have no problem proceeding from here.

- math -
**Anonymous**, Friday, October 12, 2012 at 6:30am
rrtr

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