Posted by James on Sunday, July 15, 2012 at 10:29pm.
The Estradas are planning to buy a house 5 years from now. Housing experts in their area have estimated that the cost of a home will increase at a rate of 3%/year during that 5year period. If this economic prediction holds true, how much can the Estradas expect to pay for a house that currently costs $500,000? (Round your answer the the nearest dollar.)

Calculus  Reiny, Sunday, July 15, 2012 at 10:48pm
what is
500000(1.03)^5 ?

Calculus  bobpursley, Sunday, July 15, 2012 at 10:49pm
Are they paying in cash?
The cost in dollars in five years will be 500,000(1.03)^5
But the real cost is dependent on the inflation rate (ie,how much less is a dollar worth in 5years, how much income will increase), and then, what will be the interest rates available in 5 years..Few folks pay cash for houses.

Calculus  Catie, Sunday, July 15, 2012 at 11:13pm
Paying in cash. Thank you!

Calculus  Catie, Sunday, July 15, 2012 at 11:16pm
Doing homework with James, thanks!
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