Question

The mendes family bought a new house 9 years ago for 108,000. The house is now worth 165,000 assuming a steady rate of growth, what was the yearly rate of appreciation round your answer to the nearest tenth of a percent (1.2% etc)

Answer 1

Initial price = $108,000

Let r = rate of appreciation per year.
After 9 years, the house is worth
108000*(1 + r)⁹ = 165000

Therefore
(1 + r)⁹ = 165000/108000 = 1.5278
1 + r = 1.5278^(1/9) = 1.0482
r = 0.0482 = 4.82%

Answer: 4.8% (nearest tenth)