You buy a house in 2017 for $300,000. the house appreciates at a rate of 1.2% per year. in what year will it be worth 350,000

Question

Francesca Brennan

Mathematics

25 February, 14:23

You buy a house in 2017 for $300,000. the house appreciates at a rate of 1.2% per year. in what year will it be worth 350,000

+1

Answers (2)

Know the Answer?

Makena Sanders · Answer 1

Appreciation rate = 1.2% = 0.012

Let it take n years

300000^0.012n = 350000

taking log

0.012n * log (300000) = log (350000)

0.012n * 5.4771 = 5.5440

0.0657252 n = 5.5440

n = 84.35 years

2017 + 84.35 = 2101.35

It will be worth $350,000 in 2101

Danny Mcbride · Answer 2

A=p (1+r) ^t

350000=300000 (1+0.012) ^t

350000/300000 = (1.012) ^t

Log (350000/300000) = t*log (1.012)

T=log (350000/300000) / log (1.012)

T=12.92 round = 13 years

2017+13==2,030