Question

A house is purchased for $225,000. 12 years later it is worth $312,000. assume the appreciation of the house is linear. find the equation of the line that models the appreciation in value.

Answer 1

Answer: y= 7,250x + $225,000

Because the graph is linear, you can express it in y = x+a form where y is the price and x is the year. The slope of the graph would be: ($300,000-$225,000)/ 12-0= 7,250

In year 0, the house is price $225,000, then a=$225,000

The graph would be: y= 7,250x + $225,000