Question

If the value of land in an area is increasing 4 percent a year, how long will it take for property values to double? (Round your answer to 1 decimal place.)

Answer 1

Answer:

Time to double the land's value is 18 years.

Explanation:

We use the rule of 72 to calculate time it takes the land's value to double.

Rule of 72 is a fast way to determine time to double investment, and it states that when 72 is divided by the percentage returns in a given period, it will give the time needed to double the investment.

So the land area increases by 4%

The number of years to double value= 72/4= 18 years