Initial value of each plot (Principal, P) = sh. 400,000

Here's the solution to question 2:

• Initial value of each plot (Principal, $P$) = sh. 400,000
• Rate of appreciation ($r$) = 10% p.a. = 0.10
• Formula for appreciated value: $A = P(1+r)^n$

a) Calculate the value of a plot after 2 years.

Step 1: Substitute the given values into the appreciation formula.
Here, $n = 2$ years.

$$A = 400000(1+0.10)^2$$

Step 2: Calculate the value.

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