Taylor buys a house with a value of £150,000.
The value of Taylor’s house increases by 4% each year.
Izzy buys a house with a value of £160, 000.
The value of Izzy’s house increases by 1.5% each year.
Work out the value of each house at the end of 2 years, whose house has the greater value?
Answer:
For both houses you must multiply by the percentage multiplier so
Taylor’s house: 150000 x 1.04² = £162,240
Izzy’s house: 160000 x 1.015² = £164,836
Izzy’s house will have the greater value