A house purchased last year for $80,000 is now worth $96,000. Assuming that the value of the house continues?

Question

A house purchased last year for $80,000 is now worth $96,000. Assuming that the value of the house continues to appreciate (increase) at the same rate each year, find the value 2 years from now.

Answer 1

riiiggghhhttt... cuz u know our economy is doing fabulous right now and your house gains that much value...

Answer 2

This MUST be homework because a house purchased last year for $80k is probably worth $70k now, not more than you paid for it.

Find the ratio of the increase then apply it to the new value.

I don't know for sure but I think you would divide 16/80 which is 20%.  Add 20% to 96 and get $115, then do it again...Add 20% to $115 and the value in 2 years is $138,000.  Maybe.

In reality, you'd be lucky if the value would be $80k again 2 years from now.

Answer 3

If you cant figure this one out for yourself, you might as well just drop out of school now and get your self a nice hard labor job.

Answer 4

Stop trying to get people to do your homework for you.

Answer 5

thats a cheap house, where do you live i'll buy 4