Question

Samantha buys a house in a neighborhood that cost $4000. The price of the house doubles every 4 years. How much will her house be worth in 20 years?

t = time in years
v = cost of home

Answer 1

Explanation:

We can use the formula for exponential growth to calculate the value of Samantha's house in 20 years:

v = P * (1 + r)^t

where:

P = initial price of the house = $4000

r = annual growth rate of the house price = doubling time of 4 years means an annual growth rate of 100% / 4 = 25%

t = time in years = 20

Substituting the given values, we get:

v = 4000 * (1 + 0.25)^20

v = 4000 * 2^5

v = 4000 * 32

v = $128,000

Therefore, in 20 years, Samantha's house will be worth $128,000.