Question

Correct answer gets 1 billion dollars through pay $$ pal

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Alex buys a home for $276,400. His home is predicted to increase in value 3.5% each year.

What is the predicted value of Alex's home in 25 years?
Round your answer to the nearest dollar.

A// 621,357
B// 635,191
C// 653,201
D// 673,415

Answer 1

The correct answer is C) 653,201

Explanation:

In order to calculate out this, start with the base cost. You then can make an exponential equation using the percentage. Since it will be 103.5% of the previous year's cost, raise that to the variable.

f(x) = 276,400(1.035)^x

In this equation, x is the number of years. So we can plug 25 in for that variable and then calculate.

f(x) = 276,400(1.035)^25

f(x) = 276,400(2.363)

f(x) = 653,201

Answer 2

y = 653201.

Explanation:

We can use the formula

y =ab^x

where a = initial amount and b= 1+growth rate (in decimal form) and x = number of years

a = 276400

b = 1+.035

x = 25

y = 276400 (1+.035)^25

y = 276400 (1.035)^25

y = 653201.