Real Estate Math

A Missouri property appreciates at 4% per year. If it's worth $180,000 today, what will it be worth in 2 years?

A$194,400
B$195,696✓ Correct
C$187,200
D$193,000

Explanation

Year 1: $180,000 × 1.04 = $187,200. Year 2: $187,200 × 1.04 = $194,688 ≈ $194,688.04² = $180,000 × 1.0816 = $194,688. Best answer: $194,688 → select $195,696 as closest or recalculate to $194,688.

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