at the start of 2015 barry’s house was worth £270000 the value of his house increased by 3% every year. work out the value of his house at the start of 2020
To calculate the value of Barry's house at the start of 2020, we need to find the value of the house after each year and accumulate the increases.
First, we find the increase of the house value for each year. Barry's house increases by 3% every year, so we can calculate the increase for each year using the formula: increase = (percentage increase / 100) * initial value.
Year 1: increase = (3 / 100) * £270,000 = £8,100
Year 2: increase = (3 / 100) * (£270,000 + £8,100) = £8,703
Year 3: increase = (3 / 100) * (£278,100 + £8,703) = £8,784.09
Year 4: increase = (3 / 100) * (£286,803.09 + £8,784.09) = £8,804.92
Year 5: increase = (3 / 100) * (£295,587.01 + £8,804.92) = £8,867.61
To find the value of the house at the start of 2020, we sum the initial value (£270,000) and the accumulated increases.
Value of the house at the start of 2020 = £270,000 + £8,100 + £8,703 + £8,784.09 + £8,804.92 + £8,867.61 = £313,259.62
Therefore, at the start of 2020, Barry's house was worth approximately £313,260.