Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Long Run Growth Problem - Help!!!?

For the last 20y house values rose about 6% year. At that rate, the value of a $250,000 house would double in how many years?

1 Answer

Relevance
  • 1 decade ago
    Favorite Answer

    500000 = 250000 (1.06)^t

    divide by 250000

    2 = 1.06 ^ t

    log both sides

    log 2 = t log 1.06

    divide both sides by log 1.06

    t = log 2 ÷ log 1.06

    should be around 11.9 years

Still have questions? Get your answers by asking now.