Question

Real estate prices have been increasing by a constant percentage per year for 20 years. A property was valued at $340,000 in 1990 and $385,000 in 1999.
a. What is the rate of increase in value?
b. What was the property worth in 1982?

Answer 1

A common compound interest question, its good to learn the technique for this. First put the percentage increase into a decimal, e.g. a 5% increase goes to 1.05
The initial price a then goes to a * 1.05^n after n years. Hope that helps.