Question

A $400,000 house increases its value at 2.25% each year. in the exponential model of the form , which value would represent the value of a in the function?

Answer 1

An exponential equation is represented through the equation;

y=abˣ

Here, a represents the starting value/point and
b represents the number by which the equation exponentially increases/decreases by.

In the given situation, a would be represented by the number $400,000.

Hope I helped :)

Answer 2

`a=\$400,000`

Explanation:

We have been given that a $400,000 house increases its value at 2.25% each year. We are asked to find the value of a for our function.

We know that exponential growth function is in form
`y=a\cdot b^x`, where,

a = Initial value,

b = For growth b is in for (1+r), where r represents growth rate in decimal form.

`2.25\%=(2.25)/(100)=0.0225`

Upon substituting our given values, we will get:

`y=\$400,000\cdot (1+0.0225)^x`

`y=\$400,000\cdot (1.0225)^x`

Therefore, the value of a is $400,000 for our given function.