need help quick! elijah purchased a home for 123,700. the home appreciates 5.5% each year. what is the value of the home after 13 years?

Question

anonymous · Answer

@amistre64 is the correct formula for this y=ab^x?

rhondasommer · Answer

yes

rhondasommer · Answer

a=price b=appreciation x=year y=total

anonymous · Answer

i didnt get a reasonable answer, im not sure what i did wrong.

anonymous · Answer

okay so 123700x.055x13?

rhondasommer · Answer

no

rhondasommer · Answer

$$123700((5.5)^13)$$

anonymous · Answer

oh my bad, 123700x.055^13

rhondasommer · Answer

yeas

rhondasommer · Answer

sorry it only put the 1 not the 3 in the exponent part

anonymous · Answer

but then i get lime 6.6194

anonymous · Answer

how is that right?

rhondasommer · Answer

hold on

anonymous · Answer

try this

anonymous · Answer

to increase a number by $5.5\%$ multiply it by $100\%+5.5\%=105.5\%=1.055$

anonymous · Answer

i just used a different formula, this one a=pe^rt and got 131,276.

anonymous · Answer

to do it 13 times in a row, multiply it by $1.055^{13}$

anonymous · Answer

okay im following ^ satellite

rhondasommer · Answer

so sorry :( thought i understood ... my bad

anonymous · Answer

that would be 2.0057

anonymous · Answer

take a calculator and use $$123700\times (1.055)^{13}$$

anonymous · Answer

248114?

anonymous · Answer

you want me to check?

anonymous · Answer

i think its right. thank you! so what is the formula a=pe^rt used for?

anonymous · Answer

anonymous · Answer

i have another problem but using depreciation, can i create a new question and you can take a look?

anonymous · Answer

that is for continuous compounding

anonymous · Answer

it said $5.5\%$ per year, not continuously

anonymous · Answer

okay i see. thank you! i will tag you in my next question.

anonymous · Answer

k