Question
The Mendes family bought a new house 10 years ago for $101,000. The house is now worth $160,000. Assuming a steady rate of growth, what was the yearly rate of appreciation ?
Answers
Reiny
let the rate be r
101(1 + r)^10 = 160
(1+r)^10 = 160/101 = 1.58418...
take 10th root of both sides to get
1+r
subtract 1 from that, then change to a percent
101(1 + r)^10 = 160
(1+r)^10 = 160/101 = 1.58418...
take 10th root of both sides to get
1+r
subtract 1 from that, then change to a percent