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1m0! This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question 2 Ben Collins plans to buy a house for $188,000. If the real estate in his area is expected to increase in value by 3 percent each year, what will its approximate value be seven years from now? Use Exhibit 1-A. (Round your FV factor to 3 decimal places and final answer to the nearest whole dollar.) 10 points Answer is complete but not entirely correct. Future value of the s 227 480 house ut utu utu
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Answer #1

C4 PMT 3.00% Period FV PV $2,31216.29 |FV(C2,C3,0,C5) $ (1,88,000.00)

For this, we'd use simple FV Formula in excel or financial calculator.

In which we input the I/Y(Interest rate) - 3%

Number of period (N) - 7

And present value to be 188,000. Following which we'd get a value of 231,216.29.

If done manually, the following formula can be used to get the same answer.

Co Cash Flow at period 0 r = rate of return n = number of periods

FV = 188,000 * (1.03)7

= 231,216.29

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