Problema Solution
John buys a house for 350,000. if housing prices increase by 17% per year, how long will it be until his property is worth 700,000.
Answer provided by our tutors
P = $350,000 the cost of the house when bought
r = 0.17 or 17% annual percentage
t = the time in years
A = $700,000 the value of the house after t years
A = P(1 + r)^t
350,000(1 + 0.17)^t = 700,000
1.17^t = 2
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click here to see the equation solved for t
........
t = 4.41 years
After 4.41 years the property will be worth $700,000.