Answer:
The value of Brock's house will be $457,835 in 25 years.
Option C is correct.
Step-by-step explanation:
Given: Brock bought his house for $135,200. A local real estate agent predicts that the house will appreciate in value 5% each year.
The value of house increase by 5% every year.
Formula: [tex]FV=PV(1+r)^n[/tex]
where,
FV = Future value of house
PV = Present value of house (PV=$135,200)
r = rate of interest (r=0.05)
t = period of mortage (t=25)
Substitute the values into formula and solve for FV
[tex]FV=135200(1+0.05)^{25}[/tex]
[tex]FV=135200(1.05)^{25}[/tex]
[tex]FV=135200\cdot 3.38635[/tex]
[tex]FV=457835[/tex]
Hence, The value of Brock's house will be $457,835 in 25 years.
