00:01
Hello, the value of a house today is $224 ,000.
00:14
Inflation is constant at 8 .1 % annually, for annually and we have to calculate the value of this house after 17 years.
00:48
We will use the formula, the value, the value after 17 years is equal to the value today times 1 plus 8 .1 divided by 100 to the power 17.
01:27
And this thing is 224 ,000 into 1 .081 to the power 17 and value 17 years.
01:53
And this thing if you calculate using a calculator, this thing is, this is 224 ,000 times 1 .081 raised to the power 17.
02:06
This raised to 17 multiplied with 224 ,000 and the value of this thing is 841 ,947 ,12 dollars.
02:31
So if we round it to the nearest thousands, rounded to the nearest thousands is 842 ,000 dollars...