One model for home appreciation is as follows, where C is the original cost, V is the value of the home after t years, and b is the rate of appreciation.

V = Ce^bt

If the original cost of the home was $165,000 and the rate of appreciation is 8%, what will be the value of the home after 5 years? [Round to the nearest dollar.]

A. $660,000
B. $171,734
C. $246,151
D. $178,742

Question

One model for home appreciation is as follows, where C is the original cost, V is the value of the home after t years, and b is the rate of appreciation.

V = Ce^bt

If the original cost of the home was $165,000 and the rate of appreciation is 8%, what will be the value of the home after 5 years? [Round to the nearest dollar.]

A. $660,000
B. $171,734
C. $246,151
D. $178,742