SOLUTION: A house purchased for $134,050 gains 4% of its value every year. If this growth rate continues, in how many years will the house be worth twice its original value? Round your answe

Algebra ->  Finance -> SOLUTION: A house purchased for $134,050 gains 4% of its value every year. If this growth rate continues, in how many years will the house be worth twice its original value? Round your answe      Log On


   

Question 1166443: A house purchased for $134,050 gains 4% of its value every year. If this growth rate continues, in how many years will the house be worth twice its original value? Round your answer to the nearest tenth as needed.
After years, the house will be worth twice its original value.
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


The initial price is irrelevant....

The growth factor each year is 1.04; the growth factor over t years is (1.04)^t.

You want to know when the growth factor is 2:

%281.04%29%5Et=2

The variable is in the exponent, so use logarithms.

t%2Alog%281.04%29+=+log%282%29
t+=+log%282%29%2Flog%281.04%29

Use a calculator....