Question

1. From 1992 to 2007 the average home price increased by 8% per year. In 1992 Anita Bath

bought a house for $187,000. What was it worth in 2007?

Answer 1

Anita Bath's home was worth $ 593,195.62 in 2007.

Explanation:

Given that from 1992 to 2007 the average home price increased by 8% per year, and in 1992 Anita Bath bought a house for $ 187,000, to determine what was it worth in 2007 the following calculation must be performed:

2007 - 1992 = 15

187000 x 1.08 ^ 15 = X

187000 x 3.172 = X

593,195.62 = X

Therefore, Anita Bath's home was worth $ 593,195.62 in 2007.