Question

6. In the year 1980, the median price for a house in New Hampshire was $95,000. By the year 2000, the median house value has appreciated to $133,300. What was the annual growth rate between 1980 and 2000 (state as a percent to one decimal place)

Answer 1

Answer: 1.7%

Step-by-step explanation:

You can use the RATE function on Excel to calculate this.

Number of periods = 2000 - 1980 = 20

Payment = 0 as this is not a payment expression

Present value = -95000. Present value should be in decimals.

Future value = 133,300

The formula will return a value of 1.7% as shown in the attachment.