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In the year 1985, a house was valued at $106,000. By the year 2005, the value had appreciated to $146,000. What was the annual growth rate between 1985 and 2005? Assume that the value continued to grow by the same percentage. What was the value of the house in the year 2010?

Answer :

The value of the house in the year 2010 is 150056.47.

What is growth rate?

The growth rate of a value (GDP, turnover, wages, etc.) measures its change from one period to another (month, quarter, year)

Value

v(t) = V0 ( 1 + r)^t

let V0 =  106, v(20) = 146

So,

146 = 110(1 + r )^20

146/110 = (1 + r )^20

1.327 = (1 + r )^20

1+ r = 1.014

r= 0.014

So, annual growth rate is 1.4%.

In the year 2010

v(t) = 106(1.014)^25

v(t) = 106(1.014)^25

v(t) - 150056.47

Learn more about this concept here:

https://brainly.com/question/15383938

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