Heather and Joel bought a house for $157,200 and know that the house appreciates every year. They keep track of their house value for 5 years and model their data with the exponential equation y = 150000(1.004)12t How much will their house be worth in 8 years?
Accepted Solution
A:
We have to find value of the house in 8 years so we will plug t=8 years in given equation.[tex] y=150000(1.004)^{\left(12t\right)} [/tex][tex] y=150000(1.004)^{\left(12*8\right)} [/tex][tex] y=150000(1.004)^{96} [/tex][tex] y=150000(1.46702133432) [/tex][tex] y=220053.200148 [/tex]Hence house will worth approx $220053.20 in 8 years.