Answer:
annual increase in the price of the average house is 2.64 %
Explanation:
given data
future value = $27,958
time t = 9 year
present value = $22,108
solution
we get here rate r of increase that is express as
future value = present value × [tex](1+r)^{t}[/tex] ...................1
put here value and we get r
$27,958 = $22,108 × [tex](1+r)^{9}[/tex]
[tex](1+r)^{9}[/tex] = 1.2646
r = 0.026427
r = 2.64%
