Question

The following function represents the value of a house after x years:

f(x) = 242,000(0.96)x

What does 0.96 represent? (5 points)


The present value of the house

The value of the house after x years

The increase in the value of the house per year, which is 4%

The decrease in the value of the house per year, which is 4%

Answer 1

The decrease in the value of the house per year, which is 4%

Answer 2

the decrease in the value of the house per year, which is 4%

Explanation:

The following function represents the value of a house after x years:

f(x) = 242,000(0.96)^x

For f(x)= ab^x

b represents growth or decay factor

If b >1 then it is an exponential growth

if 0<b<1 then it is an exponential decay

In f(x), b= 0.96 so it is exponential decay factor

to find decay percentage we subtract from 1

1-0.96 = 0.04

To get percentage we multiply by 100

0.04 * 100 = 4%

So the decrease in the value of the house per year, which is 4%