Question

In 2007, Linda purchased a house for $120,000. In 2017, the house was worth $245,000. Find the average annual rate of change in dollars per year in the value of the house. Round your answer to the nearest dollar. (Let x = 0 represent 2000)

Answer 1

12500 dollars/year

Explanation:

A linear equation i in the form y = mx + b, where y is a dependent variable, x is an independent variable, m is the rate of change and b is the initial value of y (i.e. x = 0).

Let x represent the year and y represent the cost of the house. Given that x = 0 represent 2000, hence we can represent the problem in the form (x, y) as:

(7, 120000) and (17, 245000). The annual rate of change is gotten using:

`m=(y_2-y_1)/(x_2-x_1) \\\\m=(245000-120000)/(17-7) \\\\m=12500\\\\m=125000\ dollars\ per \ year`