Can't figure this one out...The Mendes family bought a new house 10 years ago for $120,000. The house is now worth $191,000. Assuming a steady rate of growth, what was the yearly rate of appreciation? Round your answer to the nearest tenth of a percent (1.2% etc)
To calculate the yearly rate of appreciation, we need to find the percentage increase in the value of the house over 10 years.
First, we subtract the initial value of the house from the current value:
$191,000 - $120,000 = $71,000
Next, we divide the difference by the initial value:
$71,000 / $120,000 = 0.5917
To convert this decimal into a percentage, we multiply by 100:
0.5917 * 100 = 59.17%
Therefore, the rate of appreciation over 10 years is 59.17%.
If you want to find the yearly rate of appreciation, divide the rate by the number of years (10):
59.17% / 10 years = 5.917%
Rounding this to the nearest tenth of a percent gives us an answer of 5.9%.
So, the yearly rate of appreciation for the Mendes family's house is approximately 5.9%.