Question

Kim purchased a property for $205,000. Assuming that its value will appreciate 4% per year, how much will the condo be worth in 6 years? How long will it take the value to double?

Answer 1

in 17.66 years amount will be double

Explanation:

given data

amount = $205000

rater = 4 %

time = 6 year

to find out

How long will it take the value to double

solution

let us consider after t time amount will be double

so we apply here formula

amount = principal ( 1 + r )^t

if amount is double

2 principal = principal (1 + 0.04)^t

2 = (1.04)^t

take log both side

log 2 = t log(1.04)

t = log2 / log1.04

t = 17.672988

so in 17.66 years amount will be double