Question

the formula S=c(1+r)^2 models inflation, where C= the value today, r=the annual inflation rate, and S= the inflated value t years from now use this formula to solve the problems: If the inflation rate is 6% how much will a house now worth $465,000 be worth in 10 years? If the inflation rate is 3% how much will a house now worth $510,000 be worth in 5 years?

Answer 1

(1+r)^t NOT (1+r)^2 except for two years

465,000 (1.06)^10
= 465,000 (1.79)
= 832,744.18
now you do the rest