# Are They Building Affordable Housing These Any More?

**URL:** <https://boards.straightdope.com/t/are-they-building-affordable-housing-these-any-more/74930>\
**Category:** Factual Questions\
**Created:** [August 4, 2001, 10:08pm UTC](https://boards.straightdope.com/t/are-they-building-affordable-housing-these-any-more/74930 "2001-08-04T22:08:36Z")\
**Posts on this page:** 1\
**Page:** 2

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**Author:** ![gazpacho](https://avatars.discourse-cdn.com/v4/letter/g/6f9a4e/32.png) [@gazpacho](https://boards.straightdope.com/u/gazpacho)\
**Post date:** [August 5, 2001, 9:21pm UTC](https://boards.straightdope.com/t/are-they-building-affordable-housing-these-any-more/74930/21 "2001-08-05T21:21:25Z")

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Markxxx your math is wrong.  
you do not get 25% increase per year doing the math the way you did. You are not compounding the interst:

$10,000 when purchased  
At 25% per year the vaule each year is as follows:  
$12,500 year 1  
$15,625 year 2  
$19,531 year 3  
$24,414 year 4  
$30,517 year 5  
$38,147 year 6  
$47,684 year 7  
$59.605 year 8  
$74.506 year 9  
$93,132 year 10

V=P\*(1+I/100)^n  
V = value now  
P = principle  
I = interest in %  
n = number of compoundings  
Sovle for I  
I= 100\*((V/P)^(1/n)-1)  
I in your case is 9.6 % per year which is a pretty fast increase although it was in the mid seventies which had high inflation.

From 1976 to now the increase was 1.9% per year pretty low.

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