Question

3 Perry invested in property that cost him $1500. Five years later it was worth $3000, and 10 years from his original purchase, it was worth $6000. Assuming the growth rate remains the same, which type of function could he create to find the value of his investment 30 years from his original purchase

Answer 1

`y = 1500(2 {}^(x))`

Explanation:

So 3000/1500 is 2. His investment double in 5 years. 6000/3000 is 2. So it doubled again in 5 years.

30 years/5 years is 6 doubling periods. So this has to be an exponential equation because the values are constantly being multiplied by 2.

To format an exponential equstion, we use this:

`y = a(b {}^(x))`

a represents the initial value (1500), and b represents the rate of change. So your equation would be

`y = 1500(2 {}^(x))`