Question

Help Me ASAP!!!!! PLS

Luca bought his home for $115,000 in 2007. Property values have increased 5% every year since she has owned the home. Which of the following equations can be used to represent the price of the home x years after 2010?


y = 115,000(1.5)x
y = 115,000(0.95)x
y = 115,000(1.05)x
y = 115,000(0.05)x

Answer 1

C: y = 115,000(1.05)x

Explanation:

(havn’t actually did any math, but this is just process of elemination.)

{I’m just looking at the end of these, because the start is all the same}

if the number with the (perenthese) is below 1, it is a decreas, and the problem says it’s increasing by 5%. (1.5) Is equal to 50% increase so that means your answer would be (1.05) Because anything times 1 is the larger number, but when u add that 0.5, it’s raising the number up by 5%.

Answer 2

C. y = 115 000(1.05)^x

Explanation:

The formula for the amount accrued on an investment earning compound interest is

`A = P(1 + r)^(t)`

where

P = the amount of money invested (the principal)

r = the interest rate per period expressed as a decimal fraction

t = the number of periods

In this problem,

P = $115 000

r = 5 % = 0.05

By 2010, Luca's house will have increased in value for three years. Its value will be

`A = 115000(1 + 0.05)^(3)\\\text{The correct formula for the value of his home x years after 2010 is}\\ y = 115000(1.05)^(x)`