SOLUTION: In the year 1989, a house was valued at $100,000.00. By the year 2001, the value had appreciated to $170,000.00 a) what was the annual growth rate between 1989 and 2001? b) Assum

Algebra ->  Finance -> SOLUTION: In the year 1989, a house was valued at $100,000.00. By the year 2001, the value had appreciated to $170,000.00 a) what was the annual growth rate between 1989 and 2001? b) Assum      Log On


   

Question 1127676: In the year 1989, a house was valued at $100,000.00. By the year 2001, the value had appreciated to $170,000.00
a) what was the annual growth rate between 1989 and 2001?
b) Assume that the value continued to grow by the same percentage. What was the value of the house in the year 2013?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
from 1989 to 2001 is 12 yrs
+170+=+100%2A%28+1+%2B+r+%29%5E12+
+170%2F100+=+%28+1+%2B+r+%29%5E12+
+1.7+=+%28+1+%2B+r+%29%5E12+
Take the log of both sides
+.2304489+=+12%2Alog%28+1+%2B+r+%29+
+.019204077+=+log%28+1+%2B+r+%29+
+10%5E.019204077+=+1+%2B+r+
+1.0452113+=+1+%2B+r+
+r+=+.0452+
4.52% growth rate
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The value in 2013 ( 24 yrs from 1989 )
+V+=+100%2A%28+1+%2B+.0452+%29%5E24+
+V+=+100%2A2.8892533+
+V+=+28892533+
The value will be $288,925.33
check math & get a 2nd opinion if needed