Question

A house was valued at $100,000 in the year 1985. The value appreciated to $150,000 by the year 2000.

A) What was the annual growth rate between 1985 and 2000?
r
r
= Round the growth rate to 4 decimal places.

B) What is the correct answer to part A written in percentage form?
r
r
= %.

C) Assume that the house value continues to grow by the same percentage. What will the value equal in the year 2005 ?
value = $ Round to the nearest thousand dollars.

Answer 1

A)

`\sqrt[15]{ (150000)/(100000) } = 1.0274`

B) 2.74%

C) $100,000(1.0274^20) = $171,708

= about $172,000