Answer:
The home is worth $424,528 today
Step-by-step explanation:
To get the worth of the home today, we are going to use the exponential formula
We have this as follows;
A = P(1 + r)^t
where A is the value of the house after some time t
P is the initial value the home was worth which is $160,000
r is the rate of increase in the price of the home which is 5% = 5/100 = 0.05
t is the number of years which is 20
substituting these values;
A = 160,000(1 + 0.05)^20
A = $424,528
