Question

You have inherited land that was purchased for $30,000 in 1960. The value of the land increased by approximately 5% per year. What is the approximate value of the land in the year 2011?​

Answer 1

Answer:

  $361,223

Step-by-step explanation:

Each year, the value is multiplied by 1+5% = 1.05. After 51 years, it has been multiplied by that factor 51 times, so is now ...

  $30,000×1.05^51 ≈ $361,223