The Mendes family bought a new house 8 years ago for $126,000. The house is now worth $156,000. Assuming a steady rate of growth, what was the yearly rate of appreciation? Round your answer to the nearest tenth of a percent (1.2% etc)
The formula is A=p (1+r)^t A future value 156000 P present value 126000 R rate of appreciation? T time 8 years Solve the formula for r R=(A/p)^(1/t)-1 R=(156,000÷126,000)^(1÷8)−1 R=0.027×100 R=2.7%
