Question

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

f(x) = 242,000(1.04)x

What does 242,000 represent?

The present value of the house
The value of the house after x years
The increase in the value of the house each year
The increase in the value of the house after x years

Answer 1

A. The present value of the house

Answer 2

Answer: The present value of the house

Explanation:

Given: The following function represents the value of a house, in dollars, after x years:

`f(x) = 242,000(1.04)^x`

When we substitute x=0 in the above equation, we get

`f(0)=242,000(1.04)^0=242,000(1)=242,000`

Since at x=0, the function represent the initial value of a function.

Therefore, 242,000 represents the value of house in 0 years i.e. it represents the present value of the house.