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20 March, 21:39

Some time ago, julie purchased eleven acres of land costing $36,900. today, that land is valued at $214,800. how long has she owned this land if the price of the land has been increasing at 6 percent per year?

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  1. I
    20 March, 22:34
    0
    The formula is

    A=p (1+r) ^t

    A future value 214800

    P current value 36900

    R rate of increases 0.06

    T time?

    We need to solve for t

    T=log (A/p) : log (1+r)

    T=log (214,800:36,900) : log (1+0.06)

    T=30 years
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