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22.07.2019 •
Mathematics
Becky is 18 and would like to buy a house when she is 36. what is the discount factor for today's prices if the housing values increase 6% per year?
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Ответ:
Yearly increase of house value (i) = 6% = 0.06
After 18 years,
The house value = (1+i)^n = (1+0.06)^18 = 2.85 the current value.
Additionally,
Increase in rate = (2.85-1)/2.85 = 0.6491 ≈ 0.65 = 65%. This is the discount rate for today's price. In other words, if the house is bought today, it will be paid for 65% less the price after 18 years.
Ответ:
22a(22b)=16
484ab=16
thus
ab=16/484
ab=4/121
thus given that
ab=4/121
then
a=4 and b=1/121
hence
4+1/121
=4 1/121