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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]3 years ago
7 0
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 * <span> <span> <span> 23.8399005592 </span> </span> </span>
<span><span><span>house value = 476,798.01</span>


</span> </span>

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Explanation:

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9/90 = b/360

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A quick way to do this may be to notice how the jump from 9 to 90 is "times 10" so the jump from b to 360 is also "times 10". Think in reverse to divide 360 over 10 and we land on 36 as our answer. This line of thinking does not work as simple for all proportional problems.

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