Suppose you inherited a house that was purchased in 1950 for 20,000. It is now 2015 and the value of the house has increased by

Question

zavuch27 [327]

3 years ago

9

Suppose you inherited a house that was purchased in 1950 for 20,000. It is now 2015 and the value of the house has increased by

approximately 5% each year what is the house worth now

Mathematics

1 answer:

sleet_krkn [62] · Answer 1 · 2022-03-25T08:14:45+03:00

This deals with exponential growth.
house value = 20,000 * (1.05)^years
(where years is # of years from 1950 - so 1950 = 0, 1951 = 1, etc)
house value = 20,000 * (1.05)^65
house value = 20,000 * 23.8399005592 
house value = 476,798.01