Assume straight line appreciation ......?

Please explain how to do this. A house purchased for $108,500 is expected to double in value in 7 years. Find it's appreciation calculation.

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  • None
    Lv 7
    8 years ago

    If it doubles in 7 years, the increase will be $108,500.

    Straight line appreciation means that the increase will be the same each year, i.e., it will be $108,500/7 = $15,500/yr. Just make a table as follows

    Year.......Appreciation

    1.............$15,500

    2.............$31,000

    3.............$46,500

    and so on

  • 8 years ago

    if it doubles it's value in 7 years, then it gains $108,500 in value. mathematically:

    appreciation = [future value - present value] / time period

    appreciation = [108500 * 2 - 108500] / 7

    Then appreciation is $108,500 / 7 = $15,500 per annum.

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