Question

Shana inherited land from her late grandmother. The land originally cost $25,000 when

her grandfather had purchased it in 1945. If the value of the land increased by about 5%
annually, how much did it cost in 2015?

Answer 1

Answer: $760,660.64

Explanation:

Just did the test

Answer 2

760660.638388
Rounded: 760660.64

Explanation:

You can use an exponential function. that would be a(b)^x or 25000(1.05)^x

From 1945 to 2015 there is a 70-year gap, so you would substitute 70 for x. That would get you 760660.638388, so in 2015, the value of the land would be 760660.64 if you round up.