document.write( "Question 1153440: In the year 1985, a house was valued at $110,000. By the year 2005, the value had appreciated exponentially to $150,000. What was the annual growth rate between 1985 and 2005? (Round your answer to two decimal places.)
\n" ); document.write( " %\r
\n" ); document.write( "\n" ); document.write( "Assume that the value continued to grow by the same percentage. What was the value of the house in the year 2010? (Round your answer to the nearest dollar.)
\n" ); document.write( "$ \r
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "
Algebra.Com's Answer #775662 by Theo(13342)\"\" \"About 
You can put this solution on YOUR website!
house was 110,000 in 1985.
\n" ); document.write( "house is 150,000 in 2005.
\n" ); document.write( "2005 - 1985 = 20 years.
\n" ); document.write( "formula to use is f = p * (1 + r) ^ n
\n" ); document.write( "f is the future value.
\n" ); document.write( "p is the present value
\n" ); document.write( "r is the interest rate per time period (years in this case).
\n" ); document.write( "n is the number of time periods (years in this case).
\n" ); document.write( "formula becomes:
\n" ); document.write( "150,000 = 110,000 * ( 1 + r) ^ 20
\n" ); document.write( "divide both sides of this equation by 110,000 to get:
\n" ); document.write( "150,000 / 110,000 = (1 + r) ^ 20
\n" ); document.write( "take the 20th root of both sides of the equation to get:
\n" ); document.write( "(150,000 / 110,000) ^ (1/20) = 1 + r
\n" ); document.write( "subtract 1 from both sides of the equation to get:
\n" ); document.write( "(150,000 / 110,000) ^ (1/20) - 1 = r
\n" ); document.write( "solve for r to get:
\n" ); document.write( "r = .0156286155.
\n" ); document.write( "the annual growth rate is .0156286155
\n" ); document.write( "confirm by taking 110,000 and multiplying it by (1 + .0156286155) ^ 20.
\n" ); document.write( "you will get 150,000.\r
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "
\n" );