At the start of 2014 Lucy’s house was worth £200 000. The value of the house increased by 5% every year.
work out the value of her house at the start of 2017.
What is 200 000(1.05)^3 ?
By firstly change the decimal to fractio. So, 200000*(105/100)^3. Answer=2.31525*10^11/1000000=231,525.
To work out the value of Lucy's house at the start of 2017, we need to calculate the increase in value over the three-year period.
Step 1: Calculate the increase in value for each year.
In 2014, there is no increase in value.
In 2015, the value increases by 5% from £200,000.
Increase in value in 2015 = 5% of £200,000 = 0.05 * £200,000 = £10,000.
In 2016, the value increases by 5% from £200,000 + £10,000 (previous year's increase).
Increase in value in 2016 = 5% of (£200,000 + £10,000) = 0.05 * (£200,000 + £10,000) = £10,500.
Step 2: Calculate the final value.
To find the final value of the house at the start of 2017, we need to add the increase in value for each year to the initial value.
Final value = £200,000 + £10,000 + £10,500 = £220,500.
Therefore, the value of Lucy's house at the start of 2017 is £220,500.
To find the value of Lucy's house at the start of 2017, we need to calculate the increase in value over the three-year period from 2014 to 2017.
Since the value of the house increases by 5% every year, we can calculate the value at the start of each year as follows:
Year 1 (2015):
Value = £200,000 + (£200,000 * 5%)
Value = £200,000 + (£200,000 * 0.05)
Value = £200,000 + £10,000
Value = £210,000
Year 2 (2016):
Value = £210,000 + (£210,000 * 5%)
Value = £210,000 + (£210,000 * 0.05)
Value = £210,000 + £10,500
Value = £220,500
Year 3 (2017):
Value = £220,500 + (£220,500 * 5%)
Value = £220,500 + (£220,500 * 0.05)
Value = £220,500 + £11,025
Value = £231,525
Therefore, the value of Lucy's house at the start of 2017 is £231,525.