Question

Find the cost of a home in 20 years, assuming an annual inflation rate of 4%, if the present value of the house is $285,000. (Round your answer to the nearest cent.)

Answer 1

If $605 is invested in an account that earns 20.25%, compounded annually, what will the account balance be after 25 years? (Round your answer to the nearest cent.)

Answer 2

1.04^20 = 2.19
2.19*285,000 = 624,470

Answer 3

Now do
1.2025^25 *605

= 60,797