Question

Which statement(s) can be interpreted from the equation for a real estate value, V(C)=228,000(1.03)' where V(C) represents the value of the real estate and t represents the time in years?

The equation is an exponential growth equation.

The equation is an exponential decay equation

The equation is neither exponential decay nor exponential growth

$228,000 represents the initial cost of a real estate that appreciates 3% per year over the course of years.

$228,000 represents the initial cost of a real estate that appreciates 30% per year over the course of t years

$228,000 represents the initial cost of a real estate that depreciates 3% per year over the course of t years

$228,000 represents the initial cost of a real estate that depreciates 30% per year over the course of t years

Answer 1

The equation is an exponential growth equation.

$228,000 represents the initial cost of a real estate that appreciates 3% per year over the course of years.

Explanation:

the correct equation is: V(C)=228,000(1.03)^t

Hi, to answer this question we have to apply an exponential growth equation:

A = P (1 + r) t

Where:

p = initial cost

r = growing rate (decimal form)

t= years

A =cost after t years

Before applying the formula:

1.03 = 1+r

1.03-1 =r

0.03=r

Replacing with the values given:

A = 228,000 (1+ 0.03)^t

r = 0.03

Since r is in decimal form, we have to multiply it by 100

0.03 x 100 = 3% appreciation per year

Feel free to ask for more if needed or if you did not understand something.