The value of your property is rising by 100,000 per year. If it is worth 1.5 million today what will it be in 10 years? Finding the equation of the problem using exponential form.
No exponent needed: the value will be today's value + 10*100,000.
Now if the rise in value is tied to the present value, then you need a exponent
increase= 100,000/1,500,000= 0.0666
future value=1.5M(1+.06666)^10=2.85M
Thank you
To find the equation of the problem using exponential form, we can use the formula for exponential growth:
A = P(1 + r)^t
Where:
A is the future value
P is the present value
r is the growth rate
t is the time period
In this case, the present value P is 1.5 million, the growth rate r is 100,000 (since the value is rising by 100,000 per year), and the time period t is 10 years.
Plugging in these values, the equation becomes:
A = 1,500,000(1 + 100,000/1,500,000)^10
Simplifying the expression inside the parentheses, we get:
A = 1,500,000(1 + 1/15)^10
Further simplifying:
A = 1,500,000(16/15)^10
Calculating the value inside the parentheses and raising it to the power of 10:
A ≈ 1,500,000(1.0667)^10
Finally, evaluating:
A ≈ 1,500,000(1.790847)
A ≈ 2,686,270
Therefore, the value of the property in 10 years will be approximately 2,686,270.