Question

Exponential growth

Answer 1

Some real estate agents estimate that the value of a house could increase about 4% each year
a. write a function to model the growth in value for a house valued at 100000

Answer 2

\[
V(t)= 100000 (1.4)^t
\]

Answer 3

Why 1.4?

Answer 4

Wouldnt it be .04?

Answer 5

increasing-> from 1 by 0.4 = 1+0.4=1.4

Answer 6

its should be 1.04

as the initial value is 100% plus 4% so 104% or 1.04

Answer 7

oh.. 0.04...
\[V(t)= 100000(1.04)^t\]

Answer 8

first you form a difference eq:
\[
V_t=1.04V_{t-1}
\]

Answer 9

Thanks