Question

In the year 1985, a house was valued at $119,000. By the year 2005, the value had appreciated exponentially to $145,000. What was the value of the house in the year 2010 if the value continued to grow by the same percentage?

Options:
a) $161,385
b) $168,877
c) $174,325
d) $182,411

Answer 1

To find the value of the house in 2010, we calculate the percentage increase from 1985 to 2005 and apply that rate of growth to the value in 2005.

Step-by-step explanation:

To find the value of the house in the year 2010, we need to determine the percentage increase in value from 1985 to 2005 and continue that same rate of growth.

Step 1: Calculate the percentage increase from 1985 to 2005.

($145,000 - $119,000) / $119,000 * 100 = 21.849 %

Step 2: Apply the same percentage increase to the value of the house in 2005.

$145,000 + ($145,000 * 21.849 / 100) = $176,326.05

Therefore, the value of the house in the year 2010, if it continued to grow at the same rate, would be approximately $176,326.05.