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To calculate the annual growth rate between 1980 and 1995 for the house value, we use the formula for Compound Annual Growth Rate (CAGR):

\[
\text{CAGR} = \left( \frac{V_f}{V_i} \right)^{\frac{1}{t}} - 1
\]

Where:
- $ V_f $ is the final value ($145,000),
- $ V_i $ is the initial value ($120,000),
- $ t $ is the number of years (1995 - 1980 = 15 years).

Substituting the values:

\[
\text{CAGR} = \left( \frac{145,000}{120,000} \right)^{\frac{1}{15}} - 1
\]

I'll calculate this now.The annual growth rate between 1980 and 1995 was approximately **1.3%**.

Would you like more details on this calculation, or do you have any questions?

Here are 5 related questions to expand your understanding:
1. How does the Compound Annual Growth Rate (CAGR) differ from simple annual growth rate?
2. Can the CAGR formula be applied to other forms of investments, like stocks?
3. How would inflation affect the real value growth rate of the house?
4. What happens if the time period is shortened or lengthened? How does it affect the growth rate?
5. How can the CAGR be used to compare different types of investments?

**Tip:** When calculating growth rates, always ensure the initial and final values are accurately identified, as small changes in these can significantly impact the result.

In the year 1980, a house was valued at $120,000. By the year 1995, the value had appreciated to $145,000. What was the annual growth rate between 1980 and 1995? Round to the nearest tenth of a percent.

Determine the annual growth rate for a house valued at $120,000 in 1980, which appreciated to $145,000 by 1995. This problem involves calculating the Compound Annual Growth Rate (CAGR) and is suitable for students in Grades 10-12.

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