Question 1002178: 5.The Mendes family bought a new house 8 years ago for $129,000. The house is now worth $186,000. Assuming a steady rate of growth, what was the yearly rate of appreciation? Round your answer to the nearest tenth of a percent (1.2% etc)
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The Mendes family bought a new house 8 years ago for $129,000. The house is now worth $186,000. Assuming a steady rate of growth, what was the yearly rate of appreciation? Round your answer to the nearest tenth of a percent (1.2% etc)
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A(t) = Ao*r^t
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186000 = 129000*r^8
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r^8 = 1.44186
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r = (1.44186)^(1/8)
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r = 1.0468
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Ans: Growth rate = 4.68%
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Cheers,
Stan H.
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