Condos in Westminster go up in value by 7% each year. If the Romero family's condo is now worth $193,030, what will it be worth in 10 years?
If necessary, round your answer to the nearest cent.
To find the future value of the condo in 10 years, we can use the formula for compound interest:
Future Value = Present Value × (1 + Interest Rate)^Number of Years
In this case, the present value (P) is $193,030, the interest rate (R) is 7% or 0.07, and the number of years (N) is 10.
Future Value = $193,030 × (1 + 0.07)^10
Calculating this expression, we get:
Future Value = $193,030 × (1.07)^10
Future Value ≈ $193,030 × 1.967151
Future Value ≈ $379,139.97
Therefore, the condo will be worth approximately $379,139.97 in 10 years.