a married couple, purchased their home in December 1989 for $89,000. The house was appraised in January 2008 for $325,000. What was the annual rate of appreciation on the home during this period?

Question

amistre64 · Answer

compounded yearly eh...

amistre64 · Answer

325 = 89(1+r)^t  right?

amistre64 · Answer

3.652 = (1+r)^18  if im doing it right :)

anonymous · Answer

ok how do you get the r in the bracket...this is where I am confused

amistre64 · Answer

the r = rate of appreciation correct?

if we take the initial value, and apply the "interest" to it we get:

89 + 89(rate); which factors to:

89(1+ rate)  the rate is compunded every year for a total of 18 years.

89(1+rate)^18  =  325

anonymous · Answer

Is the t = 19?

anonymous · Answer

yes the t=19

amistre64 · Answer

log(3.652) = log[(1+r)^18]

log(3.652) = 18 log(1+r)

3.652^(1/18) = 1+r

3.652^(1/18) -1 = r

amistre64 · Answer

dec 89 is basically jan 90

amistre64 · Answer

8+10 = 2008

amistre64 · Answer

I get about 7.5%

anonymous · Answer

ok... well the answers that I have to choose from are:
    6.69% 
    6.26% 
    6.87% 
    7.05%

amistre64 · Answer

im close then  ;)

amistre64 · Answer

work it backwards to see what fits, thats what I do with multiple choices

anonymous · Answer

If you use 19 then you get 7.05%

anonymous · Answer

lol...yes...but I am trying to find out how to come up with that on a BAII Plus calculator. And log is not on this one

amistre64 · Answer

89(1.0705)^18

use the calculator on the computer.... programs, accessories, calculator usually

anonymous · Answer

ok....we are only allowed to use our calculators in this exam, so I have to figure out how to do it on this one. Stupid Business Math! LOL

amistre64 · Answer

324.7407 if you use ^19 ;)

amistre64 · Answer

without a log button...you got exponent button?

anonymous · Answer

yes

amistre64 · Answer

can you key in a random exponent?  like 1/19?

amistre64 · Answer

[325/89]^(1/19)  -1

amistre64 · Answer

0.070544965363919914409636326010341

anonymous · Answer

I use the button on the calculator that has a radical sign with the x above the radical sign and a y under the radical sign

Type in 3.652 then that sign and then 19   =

amistre64 · Answer

1/19  not 19 :)  way different value for that lol

amistre64 · Answer

ohh....radical sign, gotcha

anonymous · Answer

wow...mind spinning....lol

amistre64 · Answer

the answers 7.05 ;)  dont lose sight of that one lol

anonymous · Answer

yes....thanks for coming up with the appropriate answer...but I am trying to find out how to punch in this formula. I am a math idiot.... wish I wasn't

anonymous · Answer

OMG......figured it out....yipee.
Sooooo love you guys!!!

amistre64 · Answer

take a pic of the calculator and post it :)

amistre64 · Answer

or not lol :)

amistre64 · Answer

yay!!!   youre welcome  :)

anonymous · Answer

ok....will do

anonymous · Answer

attachment

amistre64 · Answer

attachment

anonymous · Answer

wish I knew how to use this dang thing....or that I knew how to do math

amistre64 · Answer

your math might be fine, that calculator looks mean tho lol

anonymous · Answer

it is....we are all used to a regular scientific one. So we don't know how to use all the buttons that would probably make it much simpiler

amistre64 · Answer

heres my other one ;)

amistre64 · Answer

it didnt post..... how odd

amistre64 · Answer

try it again

anonymous · Answer

NOW THAT'S MY KIND OF CALCULATOR! Bahahahaha

amistre64 · Answer

:)  LOL

anonymous · Answer

well you ARE now my Superhero!! Thanks so much. And I will definitely be back, I assure you! LOL

amistre64 · Answer

have a great time ;)