SOLUTION: In a certain area, the sale price of new single-family homes has increased 4.1% per year since 1992. If a house was purchased in this area in 1992 for $75,000 and the growth conti

Question 43956: In a certain area, the sale price of new single-family homes has increased 4.1% per year since 1992. If a house was purchased in this area in 1992 for $75,000 and the growth continues, what will the sale price be in 2006? Use y=a(1+r)^t and round to the nearest cent.
Thanks
Found 2 solutions by adamchapman, fractalier:
Answer by adamchapman(301) (Show Source): You can put this solution on YOUR website!
a=75000
r=0.041
t=2006-1992=14
Use y=a(1+r)^t:
y=131635.0299
y=sale price in 2006
y=$131,635.00 to the nearest cent

Answer by fractalier(6550) (Show Source): You can put this solution on YOUR website!
From the formula
y = a(1 + r)^t
we plug in to get
y = 75000(1 + .041)^14
now get your calculator out and get
y = $131635.03
RELATED QUESTIONS
I have a word problem that I need help with. I must show my work. 1. In a certain... (answered by checkley77)
since 1992 the price of a certain shirt has increased from $20 to $80. what is the... (answered by josmiceli)
The Susan Hansen Group in St. George, Utah, sells $16,000,000 of single-family homes and... (answered by Theo)
Use the equation y=10.7x+133.6 to find the expected median sale price of a single-family... (answered by ramkikk66)
The Susan Hansen Group in St. George, Utah, sells $16,000,000 of single-family homes and... (answered by math_tutor2020,greenestamps,ikleyn)
Problem Statement In 2010 a local construction company built a total of 52 homes for a... (answered by Solver92311)
In 1992, the life expectancy of males in a certain country was 66.4 years. In 1996, it... (answered by stanbon)
in 1992 the life expectancy of males in a certain country was 72.1 years. In 1997 it was... (answered by ankor@dixie-net.com)
In 1992 the life expectancy of males in a certain country was 66.2 years in 1997 it was... (answered by drk)