The formula S=C(1+r)t, where C equals the value​ today, r equals the annual inflation rate​ (in decimal​ form), and S = the inflated value t

Question

The formula S=C(1+r)t, where C equals the value​ today, r equals the annual inflation rate​ (in decimal​ form), and S = the inflated value t years from now. If the inflation rate is 5​%, how much will a house now worth ​$140,000 be worth in 19 ​years? Round your answer to the nearest dollar.

in progress 0
1 week 2021-11-23T12:18:40+00:00 1 Answer 0

Answers ( )

    0
    2021-11-23T12:20:21+00:00

    Answer:

    353753 $

    Step-by-step explanation:

    Given that the formula

    S=C(1+r)^t where C equals the value​ today, r equals the annual inflation rate​ (in decimal​ form), and S = the inflated value t years from now

    For the present requirement we have

    r=5%\\t = 19\\C =140000$

    To get the value after 19 years, we substitute for C, r and t

    S_{19} =140000(1+0.05)^{19} \\=353773.03

    So value after 19 years would be 353773 dollars.

Leave an answer

Browse
Browse

27:3+15-4x7+3-1=? ( )