SOLUTION: In the year 1985, a house was valued at $110,000. By the year 2005, the value had appreciated exponentially to $150,000. What was the annual growth rate between 1985 and 2005? (Rou

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: In the year 1985, a house was valued at $110,000. By the year 2005, the value had appreciated exponentially to $150,000. What was the annual growth rate between 1985 and 2005? (Rou      Log On


   

Question 1153650: In the year 1985, a house was valued at $110,000. By the year 2005, the value had appreciated exponentially to $150,000. What was the annual growth rate between 1985 and 2005? (Round your answer to two decimal places.)

%
Assume that the value continued to grow by the same percentage. What was the value of the house in the year 2010? (Round your answer to the nearest dollar.)
Found 2 solutions by greenestamps, ikleyn:
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


Growth FACTOR over 20 years: 150000%2F110000+=+15%2F11

Growth FACTOR per year: %2815%2F11%29%5E%281%2F20%29 = 1.01563 to 5 decimal places

Annual growth RATE: 1.01563-1+=+0.01563 = 1.563%

Value in 2010 (5 years after 2005 value of $150,000): 150000%281.01563%29%5E5 = cross%28%2416209%29 $162,094 to the nearest dollar.

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Thanks to tutor @ikleyn for catching the misplaced decimal in my original response....

Answer by ikleyn(52802) About Me  (Show Source):
You can put this solution on YOUR website!
.

To tutor @greenestamps: 

    Double check the last number in your post (!)