Condos in Westminster go up in value by 7% each year. If the Romero family's condo is now worth $193,030, what will it be worth in 10 years?

If necessary, round your answer to the nearest cent.

1 answer

To find the future value of the condo in 10 years, we can use the formula for compound interest:

Future Value = Present Value × (1 + Interest Rate)^Number of Years

In this case, the present value (P) is $193,030, the interest rate (R) is 7% or 0.07, and the number of years (N) is 10.

Future Value = $193,030 × (1 + 0.07)^10

Calculating this expression, we get:

Future Value = $193,030 × (1.07)^10
Future Value ≈ $193,030 × 1.967151
Future Value ≈ $379,139.97

Therefore, the condo will be worth approximately $379,139.97 in 10 years.