SOLUTION: A house cost $120,000 when it was purchased. The value of the house increases by 10% each year. Find the rate of growth each month

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Question 981210: A house cost $120,000 when it was purchased. The value of the house increases by 10% each year. Find the rate of growth each month
Answer by josgarithmetic(39620) About Me  (Show Source):
You can put this solution on YOUR website!
To use a continuous exponential growth model, y=p%2Ae%5E%28kt%29.
First find k.
-
ln%28y%29=ln%28p%29%2Bkt
kt=ln%28y%29-ln%28p%29
k=%28ln%28y%29-ln%28p%29%29%2Ft
The data for the 10% yearly value increase,
k=%28ln%281.1%29-ln%281%29%29%2F1
---------------------------------but WAIT-----------


Is all of that really necessary for the question?
For 10% growth each year, the year is in twelve month sections.
10%2F12=5%2F6=0.8333 PERCENT EACH MONTH.