during a 10-year period of constant inflation, the value of a $600,000 property will increase according...

during a 10-year period of constant inflation, the value of a $600,000 property will increase according to the equation v=600,000e^0.07t

^{a. The value of the property in 3 years will be
$____________}

^{b. This property will be worth double its original value in
______ years.}

Expert Solution

a) The value of the property in 3 years = 600,000e^0.07t

= 600,000e^0.07(3)

= $740,206.84

The value of the property in 3 years will be $740,206.84.

b) This property will be worth double its original value means the value will be $1,200,000

600,000e^0.07t = 1,200,000

e^0.07t = 1,200,000 / 600,000 = 2

ln e^0.07t = ln (2)

0.07t = 0.7

t = 0.7/ 0.07 = 10 years

This property will be worth double its original value in 10 years.

Rahul Sunny answered 1 year ago

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