Question

The value of a house is $165,000 and it loses 4% of its value every year.

A. Use the exponential decay formula below to write a function for the home's value, y, after t years.

y=A(1±r)^t

B. Now use your formula to find the value of the home after 20 years. Round to the nearest dollar.

Answer 1

1)Y=165000(1-0.04)^t
2)y=165000(1+0.04)^20=361,535.3