The formula to calculate the price appreciation is:
\(PA = P \times ((1 + r)^n - 1)\)
Where:
Example 1:
Calculation:
\(PA = 1000 \times ((1 + 0.05)^{10} - 1) = 1000 \times (1.6289 - 1) = 1000 \times 0.6289 = \$628.90\)
Example 2:
Calculation:
\(PA = 5000 \times ((1 + 0.03)^{5} - 1) = 5000 \times (1.1593 - 1) = 5000 \times 0.1593 = \$796.50\)