Suppose a house that costs $270,000 appreciates by 5% each year.
1 answer:
Please use " ^ " to indicate exponentiaton: <span>Use the equation
350 = (270)(1.05)^x.
Take the log of both sides:
log 350 = log 270 + x*log 1.05.
Subtr. log 270 from both sides:
log 350 - log 270 = x*log 1.05
log 350 - log 270
Sove for x: x = -------------------------
log 1.05
2.544- 2.431
Evaluate this using a calculator. x = ------------------
0.0212
x is then approx. 5.33, or 5 1/3 years.
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