Question

A house was purchased for $300,000 in 2000. If the value of the house increases 5% each year, which equation models the value of the house, C , in the year 2050?

Answer 1

($300,000× 0.5)+50= c in the year 2050

Answer 2

Answer: Equation that models the value of house in 2050 is
`C=3,00,000(1+(5)/(100))^(50)`

Explanation:

Since we have given that

Original price of the house in 2000 = $300,000

Rate of growth = 5%

Number of years = 50

So, we will use "Compound interest " to find the number of population in 2050.

So, it becomes,

`C=3,00,000(1+(5)/(100))^(50)\\\\C=3,00,000(1+0.05)^(50)\\\\C=3,00,000(1.05)^(50)\\\\C=3440219.93`

So, equation that models the value of house in 2050 is
`C=3,00,000(1+(5)/(100))^(50)`