A house was valued at $110,000 in the year 1989. The value appreciated to $160,000 by the year 2001. Use the compound interest formula S = P(1 + r) to answer the following questions.
A) What was the annual growth rate between 1989 and 2001?
Round the growth rate to 4 decimal places.
T =
B) What is the correct answer to part A written in percentage form?
T =
%.
C) Assume that the house value continues to grow by the same percentage. What will the value equal in
the year 2005 ?
value = $
Round to the nearest thousand dollars.