Mr. And Mrs. Sears bought a house in 1962 for $60,000. The house was appraised in 2003, and was valued at $435,000.

a. What is the annual rate of increase in the value of the house?

b. If the house was originally built in 1950, what was it valued at then? (Assume the same

rate applied year after year.)

Question

Khalil Mcclain

Mathematics

20 September, 16:04

Mr. And Mrs. Sears bought a house in 1962 for $60,000. The house was appraised in 2003, and was valued at $435,000.

a. What is the annual rate of increase in the value of the house?

b. If the house was originally built in 1950, what was it valued at then? (Assume the same

rate applied year after year.)

+1

Answers (1)

Know the Answer?

Rebekah Snow · Answer 1

1962 - 2003 = 41 years

In 2003 it's value increased to = $435,000

$435,000 / 41 years

Per year's value = $10,609.7561

B. 1950 - 1960 = 12 years

$60,000 / 12 years = $5000

Value of the house @ 1950 = $5000