Question

In 2000, the value of a home is $170,000. Since then, its value has increased 5% per year. What will the value

of the home be in 2020? Round your answer to the nearest $1000.

Answer 1

so from 2000 to 2020 that'd be 20 years later, so

`\qquad \textit{Amount for Exponential Growth} \\\\ A=P(1 + r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\dotfill &170000\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ t=years\dotfill &20\\ \end{cases} \\\\\\ A = 170000(1 + 0.05)^(20)\implies A=170000(1.05)^(20) \implies A \approx 451000`