You have inherited land that was purchased for $30,000 in 1960. The value of the land increased by approximately 5% per year. What is the approximate value of the land in the year 202O?

Elementary Geometry For College Students, 7e
7th Edition
ISBN:9781337614085
Author:Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:Alexander, Daniel C.; Koeberlein, Geralyn M.
ChapterP: Preliminary Concepts
SectionP.CT: Test
Problem 1CT
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You have inherited land that was purchased for $30,000 in 1960. The value of the land
increased by approximately 5% per year. What is the approximate value of the land in
the year 2020?
Transcribed Image Text:You have inherited land that was purchased for $30,000 in 1960. The value of the land increased by approximately 5% per year. What is the approximate value of the land in the year 2020?
Expert Solution
Step 1

Given that: Cost of land in 1960, P0=$30000Rate of increase, r=5%per year.

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