Answer to Question #92600 in Algebra for Vaibhavi Desai

Question

Question 1

Land rates on average cost K500 per year in 2010 and increase in value by 10% every year.

(i) What was the land rate in 2015?

(ii) If a man pays for a piece of land each year, how much will he have spent in total from 2010 to 2016?

(iii) In what year will the rate first exceed K1000?

Answer 1

i)

$Q'=500(1+0.1)^5=K805.255$

ii)

$\frac{500((1+0.1)^7-1)}{0.1}=K4743.5855$

iii)

$500(1+0.1)^n>1000$

$(1+0.1)^n>2$

$n>\frac{\ln{2}}{\ln{1.1}}=7.3$

This year will be 2018.