Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

kelseylynne54

  • 3 years ago

Tracy purchased a building for $209,350. The land appreciates about 4.5% each year. What is the value of the land after 15 years?

  • This Question is Closed
  1. winterfez
    • 3 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    use this formula \[P = C (1 + r/n)^{nt}\]

  2. winterfez
    • 3 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    C= initial deposit..r=rate...n=number of times you pay per year...t=time

  3. Kelumptus
    • 3 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Let's start by thinking about growth (or appreciation). Growing something by 100% is the same as \[2^{1}\] Then if we grow by 200% we have \[2^{2}\] We can therefore generalize this to \[2^{x}\] Which means, double this x times but what if we refactor this as \[(1 + 100\%)^{x}\] We can of course change the 100% to any value we want. I hope this helps. To learn more on this, read http://betterexplained.com/articles/an-intuitive-guide-to-exponential-functions-e/.

  4. winterfez
    • 3 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    |dw:1354330474984:dw|

  5. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy