Answer: £208,000
Step-by-step explanation:
Hi, to answer this question we have to apply an exponential growth function:
A = P (1 + r) t
Where:
p = original price
r = increase rate (decimal form)
t= years (2015-2010 =5 years)
A = price after t years
Replacing with the values given:
265,000 = p (1+ 0.05)^5
Solving for p
265,000 = p (1.05)^5
265,000 = p (1.05)^5
265,000/ (1.05)^5 =p
p = £207,634. =208,000 (rounded)
Feel free to ask for more if needed or if you did not understand something.
