Question

A house purchased 5 years ago for 100,000 was sold for 161,051. Assuming exponential growth , approximate the annual growth rate , to the nearest percent .

Answer 1

Answer:

     ln A - ln P

r = ----------------

             t

Step-by-step explanation:

The exponential growth function is A = Pe^(rt), where r is the annual growth rate as a decimal fraction and t is the number of years.

Taking the natural log of both sides, we get

ln A = ln P + rt, or

ln A - ln P = rt

Since t = 5 yr,

     ln A - ln P

r = ----------------

             t

and in this case,

     ln A - ln P         11.989-9.21034

r = ----------------  =  ------------------------ = 0.56

             t                           5

The annual growth rate, to the nearest percent, is 56%

Answer 2

Answer:

?

Step-by-step explanation: