If a property originally valued at $100,000 is affected by a 10% annual inflation, what would its value be after one year?

If a property originally valued at $100,000 is affected by a 10% annual inflation, what would its value be after one year?

• A. $90,000
• B. $100,000
• C. $110,000
• D. $120,000

Answer: (C)

The value of a property affected by inflation is calculated by adding the percentage of the inflation rate to the original value. In this case, the original property value is $100,000 and the annual inflation rate is 10%. To calculate the new value after one year, you would determine 10% of $100,000, which equates to $10,000. Adding this amount to the original value results in: $100,000 + $10,000 = $110,000. This calculation demonstrates how inflation increases the value of property, reflecting its growing worth in the market. Therefore, after one year, given a 10% inflation rate, the property would indeed be valued at $110,000.

The value of a property affected by inflation is calculated by adding the percentage of the inflation rate to the original value. In this case, the original property value is $100,000 and the annual inflation rate is 10%.

To calculate the new value after one year, you would determine 10% of $100,000, which equates to $10,000. Adding this amount to the original value results in:

$100,000 + $10,000 = $110,000.

This calculation demonstrates how inflation increases the value of property, reflecting its growing worth in the market. Therefore, after one year, given a 10% inflation rate, the property would indeed be valued at $110,000.