Question

You buy a house for $130,000. It appreciate 1.6% per year. identify the initial amount, growth rate and growth factor for the situation above. Then great an equation that will model it.

Answer 1

`\bf \qquad \textit{Amount for Exponential Growth}\\\\ A=P(1 + r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\to &\$130000\\ r=rate\to 1.6\%\to (1.6)/(100)\to &0.016\\ growth~factor\to &1+0.016\\ t=\textit{elapsed time}\\ \end{cases} \\\\\\ A=\stackrel{P}{130000}(\stackrel{growth~factor}{1+\stackrel{r}{0.016}})^t`