Question

Beth paid 175,000 for a townhouse in downtown portland the values of the homes in that neighborhood have been increasing by 8% each year

b) assuming that this rate of increasing continues what will the value of the townhouse be in 5 years and 6 months?
c) assuming that this rate of increase continues, when will the town house be worth 500,000

Answer 1

A=175,000×e^(0.08×5.5)
A=271,723.76

T=(log(500,000÷175,000)÷log(e))÷0.08
T=13.12 years