house value

[phizzy]

my bungalow's present value is �150,000 - if the value increases at 5% per annum what do you reckon value in say 10years and 15 years - i think about �194,000 and �?

[kempie]

http://www.google.co.uk/search?q=%281%2e05%5e1 0%29%2a150000

http://www.google.co.uk/search?q=%281%2e05%5e1 5%29%2a150000

[Loosehead]

244334.1940166162109375

(1.05^10) x 150000

311839.22691170508865814208984375

[kwicky]

What we are talking about is compound interest and the same applies to a savings account
n
FV=PV(1+i)

where FV = future value
PV = present value
i= interest rate/100
n= length of term
10
Therefore FV =150,000(1+.05)

15
or FV=150,000(1+.05)

http://www.moneychimp.com/calculator/compound_ interest_calculator.htm

[kwicky]

My entry has been reformatted

the 'n' should be the power to (1+ i)
for terms 10 and 15 respectively