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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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