a house was purchased in 1994 for $118,000 it’s appreciates by 4% in value each year
. What is the value of the house in 2021?
To calculate the value of the house in 2021, we need to find the value after 27 years of appreciation at 4% per year.
First, calculate the annual appreciation:
$118,000 x 4% = $4,720
Next, calculate the total appreciation over 27 years:
$4,720 x 27 = $127,440
Finally, add the total appreciation to the original purchase price to find the value of the house in 2021:
$118,000 + $127,440 = $245,440
Therefore, the value of the house in 2021 is $245,440.