Question: If the value of a home increases from v 1 to v 2 over n years, the average annual rate of growth (as a decimal)

If the value of a home increases from v₁ to v₂ over n years, the average annual rate of growth (as a decimal) is given by

r = n [V VV - 1.

Suppose the value of a home increases on average by 3.6% per year over 10 years. If its value at the end of the 10-year period is $325,000, find its value at the beginning of the period.

r = n [V VV - 1.

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