Question

Write an exponential equation using y a(b) that

represents the growth or decay of the situation.
A house was purchased for $160,000. The house has an
annual appreciation rate of 8%. Please write a let statement
and an equation that represents the house's value over time.

Answer 1

`y = 160000 * (1.08)^t`

Explanation:

Given

`a = 160000` --- initial

`r =8\%` --- rate

Required

The function over time

The function is calculated as:

`y = a(1 + r)^t`

So, we have:

`y = 160000 * (1 + 8\%)^t`

Express percentage as decimal

`y = 160000 * (1 + 0.08)^t`

`y = 160000 * (1.08)^t`