Last updated on October 08, 2024

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For calculating appreciation, we use the provided rate and compounding interval to determine the future value of the asset over a specified period.

To calculate the appreciation of an asset, you can use the following formula:

$$\text{Appreciation Amount} = \text{Original Value} \times \frac{\text{Appreciation Rate}}{100}$$

To find the final value after appreciation, you can use:

$$\text{Final Value} = \text{Original Value} + \text{Appreciation Amount}$$

Or, combining both steps into one formula:

$$\text{Final Value} = \text{Original Value} \times \left(1 + \frac{\text{Appreciation Rate}}{100}\right)$$

Let's say the original value of an asset is $1,000 and the appreciation rate is 5%.

$$\text{Appreciation Amount} = 1000 \times \frac{5}{100} = 1000 \times 0.05 = 50$$

$$\text{Final Value} = 1000 + 50 = 1050$$

Or, using the combined formula:

$$\text{Final Value} = 1000 \times \left(1 + \frac{5}{100}\right) = 1000 \times 1.05 = 1050$$

So, the final value after appreciation is $1,050.

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