Question

Some real state 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 $100,000. (b) Graph the function. (c) A house is valued at $100,000 in 2005. Predict the year its value will be at least $130,000.

Answer 1

From @AmazingApples00

Part A:

If the value of the home increases by 4% each year, we could say that the new value after one year would be 1.04 times last year's value.

V new = V old*1.04

To find the value after two years, we would multiply by 1.04 twice. After three years, multiply three times, etc.

So, the value "V", as a function of time "t" would be:

V(t) = $100,000*(1.04)t

For each year that passes, the exponent on the 1.04 goes up by one, meaning it gets multiplied again.