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28 June, 15:06

Ben Collins plans to buy a house for $180,000. If the real estate in his area is expected to increase in value by 1 percent each year, what will its approximate value be seven years from now? Use Exhibit 1-A. (Round your FV factor to 3 decimal places and final answer to the nearest whole dollar.)

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  1. 28 June, 18:15
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    The approximate value of the house is 192984

    Explanation:

    I don't know what you mean by "Use Exhibit 1-A" but you can calculate this as follows

    180000 * (1+1%) ^7

    The general formula of cumulative interest is

    A * (1+i) ^n

    A = Amount

    i = interest, in this case 1%

    n = number of periods, in this case, 7
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