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.
270000 * (1 + .03)^(2020 - 2015)
313004
313004 for those that just want the answer and no nonsense
where is the damn answe4r
bad question so i cheeted
To work out the value of Barry's house at the start of 2020, we need to calculate the value after each year from 2015 to 2020.
Since the value of Barry's house increased by 3% every year, we can use the formula for compound interest:
Value after each year = Initial value * (1 + interest rate)^number of years
Let's go step by step:
1. Calculate the value after the first year (2016):
Value after 2016 = £270000 * (1 + 0.03)^1 = £270000 * 1.03 = £278100
2. Calculate the value after the second year (2017):
Value after 2017 = £278100 * (1 + 0.03)^1 = £278100 * 1.03 = £286543
3. Calculate the value after the third year (2018):
Value after 2018 = £286543 * (1 + 0.03)^1 = £286543 * 1.03 = £295600.29
4. Calculate the value after the fourth year (2019):
Value after 2019 = £295600.29 * (1 + 0.03)^1 = £295600.29 * 1.03 = £304788.30
5. Calculate the value at the start of 2020:
Value at the start of 2020 = £304788.30 * (1 + 0.03)^1 = £304788.30 * 1.03 = £313103.11
Therefore, the value of Barry's house at the start of 2020 is £313103.11.
So first of all, you need to times 3% interest by 5 as it goes up 3% each year and there have been 5 years.
Then, with the existing price of £270,000, you need to add 15% of £270,000, which is 40,500.
Then with 270,000 and 40,500 added you should get £310,500, which is the worth of Barry's house in 2020