Need help with pre-cal?
I have to use one of the formula
I=prt
A=p(1+r/n)^nt
A=Pe^rt
P=Ae^-rt
P=A(1+r/n)^-nt
Carla has just inherited a building that is worth $250,000. The building is in a high demand area, and the value of the building is projected to increase at a rate of 25% per year for the next 4 years. How much more money will she make if she waits four years to sell the building instead of selling now?
Favorite Answer
next year’s is 250000 +25% of 250000 that is
250000 +( 0.25)(250000) or
250000(1 +0.25)
in 2 years, the price will be
{250000(1 +0.25)} + 25% of {250000(1 +0.25)}
simplifying thisto get
{250000(1 +0.25)}{1 +0.25)} = {250000(1 +0.25)^2},
you see the relation ; after 2 years you have (1 +0.25)^2 factor….
and so on….
250,000 multiplied by (1 +0.25)^4 =
250,000(2.4414) = $610351 (Rounded)
She makes $610351 – 250000= $360351
- Academic Writing
- Accounting
- Anthropology
- Article
- Blog
- Business
- Career
- Case Study
- Critical Thinking
- Culture
- Dissertation
- Education
- Education Questions
- Essay Tips
- Essay Writing
- Finance
- Free Essay Samples
- Free Essay Templates
- Free Essay Topics
- Health
- History
- Human Resources
- Law
- Literature
- Management
- Marketing
- Nursing
- other
- Politics
- Problem Solving
- Psychology
- Report
- Research Paper
- Review Writing
- Social Issues
- Speech Writing
- Term Paper
- Thesis Writing
- Writing Styles