The formula to calculate the future value of an asset based on appreciation rate is:
\[ \text{Future Value} = \text{Starting Value} \times (1 + \text{Appreciation Rate})^{\text{Period}} \]
Let's say you bought a house for $150,000 in 2018, and you wonder what its value will be in 2022 with an annual appreciation rate of 5.4%:
\[ \text{Future Value} = 150,000 \times (1 + 0.054)^4 = 185,120.15 \]
Thus, the value of your house in 2022 will be approximately $185,120.15.
