The average house price in Boomtown rose 30 percent each year for the last five years. If the average house price is curently $250,000, what was the average price five years ago?
The average house price in Boomtown rose 30 percent each year for the last five years. If the average house p
i would guess you'd figure the rate of increase would be multiplied by the current average price of the house each year... so 1.3 (the whole plus 30 percent) to the fifth (five increases) times some original must equal current value
250,000=P(1.3^5)
divide, and i got $67,331
i have no clue if its correct. lol
Reply:x = original price
1.3x = price after 1 year
(1.3)(1.3)x = price after 2 years
((1.3) ^n) x = price after n years
((1.3) ^5) x = price after 5 years = 250,000
x = 250,000 / ((1.3) ^5) = 250,000 / 3.71293
x = 67, 332.27 (rounded)
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