document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1131681>Question 1131681</A>: <I><SPAN STYLE=\"word-break: break-all;\"> In San Francisco, the average cost of a single-family house was $255,600 in 1990 and $677,300 in 2004.<BR>\n" );
document.write( "(a) Determine the approximate average annual inflation rate in single-family houses over the 14-year period. (Round your final answer to two decimal places.) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #748442 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=748442\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 255,600 in 1990<BR>\n" );
document.write( "677,300 in 2004\r<BR>\n" );
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document.write( "formula used is f = p * (1 + r) ^ n\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per year.<BR>\n" );
document.write( "n is the number of years.\r<BR>\n" );
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document.write( "interest rate per year is he annual inflation rate in this problem.\r<BR>\n" );
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document.write( "formula becomes:\r<BR>\n" );
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document.write( "677300 = 255600 * (1 + r) ^ 14\r<BR>\n" );
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document.write( "divide both sides of this equation by 255600 to get:\r<BR>\n" );
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document.write( "677300 / 255600 = (1 + r) ^ 14\r<BR>\n" );
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document.write( "take the 14th root of each side of this equation to get:\r<BR>\n" );
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document.write( "(677300 / 255600) ^ (1/14) = 1 + r\r<BR>\n" );
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document.write( "subtract 1 from both sides of this equation to get:\r<BR>\n" );
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document.write( "(677300 / 255600) ^ (1/14) - 1 = r\r<BR>\n" );
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document.write( "solve for r to get r = .0720869662\r<BR>\n" );
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document.write( "convert to percent by multiplying by 100 to get average annual inflation rate percent = 7.20869662 percent.\r<BR>\n" );
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document.write( "if they want the answer as inflation rate and not percent, then the answer is .07 rounded to 2 decimal places.\r<BR>\n" );
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document.write( "if they want the answer as inflation rate percent, then the answer is 7.21% rounded to 2 decimal places.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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