annuaL increase formula

[Havenhelpme]

hi! My answer is 13% but that seems high. If an average house in RICH TOWN went for $650,000 on July 1, 2012 and then went for 2.25 million on 1/1/22, what is the average increase per year? Your answer is X (for the problem below).

EXTRA CREDIT: if a house is sold for 2,400,000 today, what will it be worth in 10 years (Y) if the annual increase is X. My answer is 9 million. WHy is that wrong?

Solve for X & Y.

THANK YOU!

 

[Harry_the_cat]

hi! My answer is 13% but that seems high. If an average house in RICH TOWN went for $650,000 on July 1, 2012 and then went for 2.25 million on 1/1/22, what is the average increase per year? Your answer is X (for the problem below).

EXTRA CREDIT: if a house is sold for 2,400,000 today, what will it be worth in 10 years (Y) if the annual increase is X. My answer is 9 million. WHy is that wrong?

Solve for X & Y.

THANK YOU!

Can you please show how you got 13%? Have you rounded correctly? Incorrect rounding in the first part can lead to a very different answer to the second part.
Also, how did you get 9 million if you used X=13% ?
Also, does Y=10 years come from a previous answer of yours?

 

[Deleted member 4993]

hi! My answer is 13% but that seems high. If an average house in RICH TOWN went for $650,000 on July 1, 2012 and then went for 2.25 million on 1/1/22, what is the average increase per year? Your answer is X (for the problem below).

EXTRA CREDIT: if a house is sold for 2,400,000 today, what will it be worth in 10 years (Y) if the annual increase is X. My answer is 9 million. WHy is that wrong?

Solve for X & Y.

THANK YOU!

How did you calculate 13% ? Please share work. The price will "compound" each year.

Please show us what you have tried and exactly where you are stuck.

Please follow the rules of posting in this forum, as enunciated at:

READ BEFORE POSTING​

Please share your work/thoughts about this problem.