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A house purchased 5 years ago for 100,000 was sold for 161,051. Assuming exponential growth , approximate the annual growth rate , to the nearest percent .

2 Answers

3 votes

Answer:

ln A - ln P

r = ----------------

t

Explanation:

The exponential growth function is A = Pe^(rt), where r is the annual growth rate as a decimal fraction and t is the number of years.

Taking the natural log of both sides, we get

ln A = ln P + rt, or

ln A - ln P = rt

Since t = 5 yr,

ln A - ln P

r = ----------------

t

and in this case,

ln A - ln P 11.989-9.21034

r = ---------------- = ------------------------ = 0.56

t 5

The annual growth rate, to the nearest percent, is 56%

User Atrag
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2 votes

Answer:

?

Explanation:

User Seand
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4.8k points