Price Appreciation Calculator

Example Calculations

Example 1:

• Initial Price (P): $1000
• Rate of Appreciation (r): 0.05
• Number of Periods (n): 10

Calculation:

\(PA = 1000 \times ((1 + 0.05)^{10} - 1) = 1000 \times (1.6289 - 1) = 1000 \times 0.6289 = \$628.90\)

Example 2:

• Initial Price (P): $5000
• Rate of Appreciation (r): 0.03
• Number of Periods (n): 5

Calculation:

\(PA = 5000 \times ((1 + 0.03)^{5} - 1) = 5000 \times (1.1593 - 1) = 5000 \times 0.1593 = \$796.50\)