Asked by Tyjaha
The Mendes family bought a new house 11 years ago for $100,000. The house is now worth $196,000. Assuming a steady rate of growth, what was the yearly rate of appreciation?
I'm not sure how to set this problem up at all. Please help :(
I'm not sure how to set this problem up at all. Please help :(
Answers
Answered by
Reiny
100000(1+i)^11 = 196000
(1+i)^11 = 1.96
take 11th root of both sides
1+i = 1.96^(1/11) = 1.06309
i = .06309
or
appr 6.3%
check:
100000(1.06309)^11 = 196006 , not bad
(1+i)^11 = 1.96
take 11th root of both sides
1+i = 1.96^(1/11) = 1.06309
i = .06309
or
appr 6.3%
check:
100000(1.06309)^11 = 196006 , not bad
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