Question

Suppose a house costs $270,000 appreciates by 5% each year. In about how many years will the house be worth $350000?

Answer 1

350000 =  270000(1.05)^n

1.05)^n = 350000/270000 = 1.296296

n =  log 1.296296 / log 1.05 = 5.3 years answer