Question

A home in small town in Texas is currently worth $344,000. It is expected to grow by 5% per year over the next several years.

Part A: Write the equation to model the situation in the form y=a(b)^x where y represents the value of the home after x years.

Part B: What will be the approximate value of the home in 10 years? Round your answer to the nearest cent.

Answer 1

Part A: The value of the house (y) after x years:

y = 344000 x (1 + 5/100)^x

Part B: Approximate value of the house after 10 years:

(Using the formula in part A)

V = 344000 x (1 + 5/100)^10 = 560339.8 $

Hope this helps!

:)