A plot of land costs £58,000.Its value increases by 10% per annum compounded anually. What will be the cost of the land 5 years hence?

Using the compound interest formula, the final cost equals the Principal multiplied by (1 plus Rate divided by 100) raised to the number of years. We calculate 58,000 multiplied by 1.10 to the power of 5. This gives 58,000 multiplied by 1.61051, which equals 93,409.58. The cost of the land 5 years hence is 93409.

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