the price of a land increases 10% every year .If the price in 1995 was10,000 find its price in 1998

Question

It is the question of ratio and proportion

Answer 1

y = a*b^x

 

where:

• y = price
• a = the initial price = $10,000
• b = rate of increase = 1 + 10% = 1.10
• x = years = 1998-1995 = 3

 

y = ($10,000)*(1.10)³

 

Can you finish it from here?

Answer 2

Kshitij,  If the price of land increases by .10 every year and in 1995 it was $10,000, then $10,000 x .10= $1,000.  So, in1998 which is 3 years it will increase $1,000 x 3= $3,000 and $10,000 +$3,000= $13,000 which is the price in 1998.

Answer 3

10,000 in 1995

 

10,000 + .10*10,000 = 11,000 in 1996

 

11,000 + .10*11,000 = 12100 in 1997

 

12100 + .10*12100 = 13,310 in 1998.

 

The formula you could use to solve this is F = P(1 + i)ⁿ

 

The Future value (F) is equal to the Present value (P) times one plus the annual increase (i) to the power of the number of years (n).

 

P = 10,000

i = .10

n = 3

F = 13,310

 

Hope this helps Kshitij!