Question

Maxxie purchased a tract of land for $24,500. Today, the same land is worth $43,800. How many years have passed if the price of the land has increased at an annual rate of 6.4 percent

Answer 1

9.35 years

Step-by-step explanation:

To find the numbers of years that have passed, you can use the following formula:

n = ln(FV / IV)/ln(1 + r)

n= number of periods

FV= Future value= $43,800

IV= Initial value= $24,500

r= rate= 6.4%

n=ln(43,800/24,500)/ln(1+0.064)

n= ln1.79/ln1.064

n=0.58/0.062

n= 9.35

According to this, 9.35 years have passed.