00:01
Hello, the given statement is true.
00:06
Now let's know about the reason or we can say the explanation behind this.
00:14
The question says that price grow at a constant of $25 ,000 from 2013 to 2022.
00:36
Assume that home price be $500 ,000.
00:47
Now as the price grows at a constant rate, then in 2013 -14 there will be a rise in the home price and it will be $525 ,000 as there has been an increase of $25 ,000.
01:06
Then in 2014 -15 it will become $550 ,000.
01:17
So the growth rate here is 5 % but the growth rate here is 4 .76%.
01:27
How we have calculated? there is a difference between the difference is $25 ,000 and it will be divided by $500 ,000 multiplied by 100.
01:39
So it will become 5%...
