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Answer:
The rate at which the value of house increases in 40 years is 1.03
Step-by-step explanation:
The initial value of house = P = $30,000
The final value of house = F = $120,000
The period for which the value increase = 40 years
Let the rate at which the value increases in 40 years = r%
<u>Now, According to question</u>
The final value of house after n years = The initial value of house ×
i.r F = P ×
Or, r =
Or, r =
Or, r =
∴ r = 1.03
The rate at which the value increases in 40 years = r = 1.03
Hence,The rate at which the value of house increases in 40 years is 1.03 Answer