Question

The present value of a house is $242,000. The value of the house increases at the rate of 4% every year. A function is shown below: f(x) = 242,000(1.04)x What does f(x) represent?

The original value of the house
The future value of the house after x years
The increase in the value of the house each year
The increase in the value of the house after x years

Answer 1

B. The future value of the house after x years

Explanation:

Answer 2

For this case we have a function of the form:
y = A * (b) ^ x
Where,
A: initial investment
b: growth rate
x: number of years.
We then have the following function:
f (x) = 242,000 (1.04) ^ x
f (x) is the value of the house after x years.
Answer:
The future value of the house after x years