Question

A invested 230,000 to purchase a home. After ten years, he sold the home for 340,000. Calculate the effective interest rate of growth of the value of the home. *​

Answer 1

Answer:

Hope it may help u

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Step-by-step explanation:

Simply just substract 340,000 from 230,000 = 110000

so the interest rate will come

Answer 2

Answer:

4.782% is the effective interest rate of growth on the value of home.

Step-by-step explanation:

Given that

Purchasing price of home is 230000

After 10yr

Selling price of home is 340000

To find

Effective interest rate of growth of the value of the home

Solution

By given condition

$profit = 340000 - 230000 \\ = 110000$

hence profit per year as 10year is given

$= \frac{110000}{10} = 11000$

hence 11000 is interest rate on value of home each year

Interest rate in % as

$interest \: rate = \frac{11000 \times 100}{230000}$

by cross multiplication and division

$interest \: rate \: is \: 4.782\%$