In January 2010, the average house price in the United States was $283,400. In January 2000, the average price was $200,300. What was the annual increase in selling price?
+23254 Use the formula: A = P(1 + r)t
where A = final amount = 283400 P = initial amount = 200300 r = rate t = number of years = 10
283400 = 200300(1 + r)10
Divide by 200400 ---> 1.414877683 = (1 + r)10
Find the 10th root ---> 1.0353 = 1 + r
Subtract 1 ---> r = 0.0353 or 3.53%
+23254 Use the formula: A = P(1 + r)t
where A = final amount = 283400 P = initial amount = 200300 r = rate t = number of years = 10
283400 = 200300(1 + r)10
Divide by 200400 ---> 1.414877683 = (1 + r)10
Find the 10th root ---> 1.0353 = 1 + r
Subtract 1 ---> r = 0.0353 or 3.53%
