SOLUTION: The Pendino family bought a new house 10 years ago for $128,500. The house is now worth $180,000. Assuming a steady rate of exponential growth, what was the yearly rate of apprecia

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: The Pendino family bought a new house 10 years ago for $128,500. The house is now worth $180,000. Assuming a steady rate of exponential growth, what was the yearly rate of apprecia      Log On


   

Question 591782: The Pendino family bought a new house 10 years ago for $128,500. The house is now worth $180,000. Assuming a steady rate of exponential growth, what was the yearly rate of appreciation in %? (using y=ab^x)
Work so far: 180,000=128,500b^10, then we got 1.4007=b^10.
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Good so far. Now take the tenth root of both sides to solve for b

1.4007=b%5E10

root%2810%2C1.4007%29=root%2810%2Cb%5E10%29

1.03427=b

b+=+1.03427

So the yearly rate of appreciation as a percentage is approximately (1.03427-1)*100 = 3.427 %