Real Estate Investing Principles
someone PLEASE help me with these algebra problems!!..?
Problem 1: If a piece of real estate purchased for $75,000 in 1998 appreciates at the rate of 6% per year, then its value t years after the purchase will be f(t)=75,000(1.06^t). According to this model, by how much will the value of this piece of property increase between the years 2005 and 2008? & Problem 2: The amount A in an account after t years of an initial principle P invested at an annual rate r compounded continuously is given by A= Pe^rt where r is expressed as a decimal. What is the amount in the compounded continuously?
Problem 1: in 2005, t=2005-1998=7
in 2008, t=2008-1998=10
amt property appreciates by between 2005 and 2008
= f(10) -f(7)
=75,000(1.06^10) – 75,000(1.06^7)
find the answer by typing the above into a calculator
I don’t really understand problem 2. What are you trying to find?
I’m thinking it could be either P or r:
To find P: A=Pe^rt
e^rt=A/P
In(e^rt)=In(A/P)
rt = In(A/P)
r = [In(A/P)]/t
To find P:
P = A / [e^rt]
I hope these were helpful.
Principles for Success in Real Estate Investing Sample