Question

A home’s value increases at an average rate of 5.5% each year. The current value is $120,000. What function can be used to find the value of the home after x years?

Answer 1

f(x) = 120,000(1.055)x

Answer 2

So we need to cover 5.5% into a decimal.

0.055 = 5.5%

The house value is 120,000.
So

(1.055x) * (120,000)=

So

f(x)=1.055x * 120,000