Shelby purchased a plot of land for $27,500. the land appreciates about 2.9% each year. what is the value of the land after nine years?

Original cost of the land = $27,500
The land appreciates in value by 2.9% each year.

After 1 year, the value is
$27500*(1 + 0.029) = $27500*1.029 

After 2 years, the value is
$27500*1.029*1.029 = $27500*(1.029²)

By induction, the value after n years is
$27500*(1.029ⁿ)

After 9 years (n=9), the value is
$27500*(1.029⁹) = $35,568.95

The value after 9 years is $35,568.95

Answerannuity