SOLUTION: houses tend to increase in value over time. in a certain neighborhood, houses have been known to increase in value an average of 3.25% per year. George bought his home in January o
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Question 1020287: houses tend to increase in value over time. in a certain neighborhood, houses have been known to increase in value an average of 3.25% per year. George bought his home in January of 1985 for a total of $123,456 if his home increases in value according to this average rate per year, what will be the value of his home in 2017? Answer by FrankM(1040) (Show Source):
You can put this solution on YOUR website! For this kind of problem, you need to understand, for example, +10% is the same as multiplying by 1.1. If 2 years go by, instead of +10% and +10%, you can use an exponent of 2 and get . Similarly, dropping or losing 10% would produce a multiplying by .9. Saying -10% is the same as multiply by .9.
Now to add 3.25% we multiply by 1.0325.
