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The value of a building is rising by $10,000 per year. If it is worth $200,000 today, what will it be worth in 3 years?

Question

The value of a building is rising by 10,000peryear.Ifitisworth10,000 per year. If it is worth 200,000 today, what will it be worth in 3 years?

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Solution

The value of the building is increasing by 10,000eachyear.So,inoneyear,thebuildingwillbeworth10,000 each year. So, in one year, the building will be worth 200,000 + 10,000=10,000 = 210,000.

In two years, the building will be worth 210,000+210,000 + 10,000 = $220,000.

In three years, the building will be worth 220,000+220,000 + 10,000 = $230,000.

So, the building will be worth $230,000 in 3 years.

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