Math Problem of the Week - Algebra and Up - Oct. 17, 2021 to Oct. 23, 2021

Algebra and Up: 

Question: A cottage by the sea has a value of $750,000, which has increased at an annual rate of 5% for the past 10 years. How much was the cottage worth 10 years ago? You may use your calculator. 

Answer: $460,434.94

Solution: The value of the cottage is currently $750,000, and it was worth C dollars 10 years ago. If its value has increased 5% each year for the past 10 years, then we know that $750,000 = C × 1.05¹⁰. To solve for C, we divide $750,000 ÷ 1.05¹⁰ = $460,434.9402, which rounds to $460,434.94.