Question

Suppose a house that costs $270,000 appreciates by 5% each year.

Answer 1

Answer:

6 years.

Step-by-step explanation:

We have been given that a house that costs $270,000 appreciates by 5% each year. We are asked to find the number of years it will take the house to be worth 350,000 by using equation $350=270*(1.05)^x$.

First of all let us divide both sides of our equation by 270.

$\frac{350}{270}=\frac{270*(1.05)^x}{270}$

$\frac{350}{270}=(1.05)^x$

Upon taking natural log of both sides of our equation we will get,

$ln(\frac{35}{27})=ln((1.05)^x)$

Using natural log property $ln(a^b)=b*ln(a)$ we will get,

$ln(\frac{35}{27})=x*ln(1.05)$

$0.2595111954850846=x*0.048790164169432$

$x=\frac{0.2595111954850846}{0.048790164169432}$

$x=5.31892441648$

Since it will take more time than 5 years, so will round up our answer.

$x\approx 6$

Therefore, in approximately 6 years the house will be worth $350,000.

Answer 2

THE ANSWER TO YOUR PROBLEM IS 5 I HOPED I COULD HELP