Suppose you inherited a house that was purchased in 1950 for 20,000. It is now 2015 and the value of the house has increased by approximately 5% each year what is the house worth now
This deals with exponential growth. house value = 20,000 * (1.05)^years (where years is # of years from 1950 - so 1950 = 0, 1951 = 1, etc) house value = 20,000 * (1.05)^65 house value = 20,000 *
23.8399005592
house value = 476,798.01
