Question

If inflation is 6% a year compounded annually, what will it cost in 21 years to buy a house currently
valued at $230,000? Round to the nearest cent.

Answer 1

Present value = 230,000
Inflation rate, r = 6% p.a.
Period, n = 21
Future value
= present value * (1 + r)ⁿ

You should have no problem proceeding from here.

Answer 2

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