Property in suburbs closer to the city is appreciating about 7% annually.If this trend continues, what will a $33,000 one-acre lot be worth in five years? Give the result to the nearest dollar.
A)$46,284
B)$50,605
C)$47,518
D)$46,901
E)$47,496

Question

Quizplus · Accepted Answer

The value of the property appreciates 7% annually, so the future value can be calculated using the formula for compound interest: $FV = PV(1 + r)^n$, where $FV$ is the future value, $PV$ is the present value ($33,000), $r$ is the annual rate of appreciation (7% or 0.07), and $n$ is the number of years (5). Plugging in the values: $FV = 33000(1 + 0.07)^5 = 33000(1.07)^5 ≈ \$46,284$.

Property in Suburbs Closer to the City Is Appreciating About