A house that 23 years ago was worth $110,000 has increased in value by 5% each year because of inflation. What is its worth today? (Round your answer to the nearest cent.)
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Step 1
We can use the formula for compound interest: A = P(1 + r/n)^(nt) where A is the final amount, P is the initial amount, r is the annual interest rate (in decimal form), n is the number of times the interest is compounded per year, and t is the number of years. Show more…
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