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24 January, 10:15

The Freeman family bought a new apartment five years ago for $80,000. The house is now worth $199,200. Assuming a steady rate of growth, what was the yearly rate of appreciation?

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  1. 24 January, 11:17
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    199200=80000 (1+r) ^5

    Solve for r

    r = ((199,200:80,000) ^ (1:5) - 1) * 100

    r=20 %
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