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# 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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- NoneLv 78 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

- alabasterLv 58 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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