Given :
Moe bought a home for $200,000 in 2012. Every year the city appraiser has said Moe's home has increased in value 5% .
To Find :
What it Moe's home worth in 2019.
Solution :
We know, formula of compound interest is :
[tex]A = P ( 1 + \dfrac{R}{100})^n\\\\A = 200000\times ( 1 + \dfrac{5}{100})^{2019-2012}\\\\A = 200000\times ( 1 + \dfrac{1}{20})^7\\\\A = \$ 281420.0[/tex]
Hence, this is the required solution.
