Economics: Home Inflation Rate One of the most important asp…

Ecоnоmics: Hоme Inflаtion Rаte One of the most importаnt aspects in determining the strength of the economy is the inflation rate of homes.  In economic terms, inflation is basically a rise in prices.  A positive inflation rate (which is often an undesired economic phenomenon), can negatively affect housing prices.  For example, if inflation is high, then interest rates for mortgage loans are high, which means fewer home buyers will borrow money from the bank.  Therefore, fewer buyers are in the market for a home, which often leads to depressing housing prices.  Likewise, if inflation is low, then interest rates for mortgage loans are low, which means more home buyers are willing to borrow money from the bank; therefore, more buyers will be in the market for a home, which often leads to increased housing prices. A Financial Advisor is someone whose job it is to calculate inflation rates of homes.  To calculate the inflation rate of a home that increased or decreased from (value) to (value) over years, the annual rate of inflation (expressed in decimal form) can be modeled as:     The home pictured above was posted for sale in Orlando, FL.  The owners bought the home in 2003 for $157,500. Eighteen years later, they're finally selling their home and are asking for $339,000.  Using this information, calculate the inflation-rate of this home.  Represent your answer as a percentage with 2 decimal places. *Example: If your solution is 0.1348..., you would multiply by 100 to convert your answer into a percent 13.48%.