Answer: the function is
A = 120000(1.055)^x
Explanation:
A homes value increases at an average rate of 5.5% each year. The growth rate is exponential. We would apply the formula for exponential growth which is expressed as
A = P(1 + r/n)^ nt
Where
A represents the value of the home after t years.
n represents the period of growth
t represents the number of years.
P represents the initial value of the home.
r represents rate of increase in value.
From the information given,
P = 120000
r = 5.5% = 5.5/100 = 0.055
n = 1
Therefore
A = 120000(1 + 0.055/1)^ x × 1
A = 120000(1.055)^x