SOLUTION: A house was valued at $95,000 in the year 1989. The value appreciated to $170,000 by the year 2001. A) If the value is growing exponentially, what was the annual growth rate betw

Question 1195812: A house was valued at $95,000 in the year 1989. The value appreciated to $170,000 by the year 2001.
A) If the value is growing exponentially, what was the annual growth rate between 1989 and 2001? r = Round the growth rate to 4 decimal places.
B) What is the correct answer to part A written in percentage form? r = %.

C) Assume that the house value continues to grow by the same percentage. What will the value equal in the year 2006 ? value = $ Round to the nearest thousand dollars.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
let 1989 be 0
t=12 in 2001
95000(1+r)^12=170000
(1+r)^12=170000/95000=1.789
take the 12th root of that value and round at end.
1+r=1.049689
r=0.0497 or 4.9689%
1.049689^17 (for 2006)=2.28050
multiply that by 95,000 for the answer $216,647.95 or $217,000
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