Answer to Question #275265 in Discrete Mathematics for Good heart

Question

A house which is valued at 2,600, 000 appreciated at rate of 12% per year

I. What will be its value after two and half years?

ii. After how long will its value be 4200,000

Answer 1

i)

$FV=PV(1+r)^n$

$FV=2600000(1+0.12)^{2.5}=3451583.66$

ii)

$n=\frac{ln(FV/PV)}{ln(1+r)}=\frac{ln(42/26)}{ln1.12}=4.23$ years