anassetworth20000appreciates8%for5years
What is the accumulated value?
Book Value Formula:
B(t) = A(1 + r)t
Calculate appreciation rate:
| Appreciation rate (r) = | Appreciation % |
| 100 |
| Appreciation rate (r) = | 8 |
| 100 |
Appreciation rate (r) = 0.08
Plug in our numbers
B(5) = 20000(1 + 0.08)5
B(5) = 20000(1.08)5
B(5) = 20000(1.4693280768)
Final Answer
B(5) = 29,386.56
