The average Canadian home was $70,000 in the early 80s. In 30 years, the average increased to $390,000. The average increase is 5.89%

Question

Quizplus · Accepted Answer

The average annual increase can be calculated using the formula for compound annual growth rate (CAGR): CAGR = (Ending Value/Beginning Value)^(1/Number of Years) - 1. Plugging in the values: CAGR = ($390,000/$70,000)^(1/30) - 1 ≈ 0.0589 or 5.89%.

The Average Canadian Home Was $70,000 in the Early 80s