Question

Suppose you inherited a house that was purchased in 1950 for 20,000. It is now 2015 and the value of the house has increased by approximately 5% each year what is the house worth now

Answer 1

for acellus the answer 476,798

Answer 2

This deals with exponential growth.
house value = 20,000 * (1.05)^years
(where years is # of years from 1950 - so 1950 = 0, 1951 = 1, etc)
house value = 20,000 * (1.05)^65
house value = 20,000 * 23.8399005592
house value = 476,798.01