SOLUTION: if a piece of real estate purchased for $50,000 in 1998 appreciates at the rate of 5% per year, then its value t years after the purchase will be f(t)=50,000(1.05^t). Accordiing t

Question 102467: if a piece of real estate purchased for $50,000 in 1998 appreciates at the rate of 5% per year, then its value t years after the purchase will be f(t)=50,000(1.05^t). Accordiing to this model, by how much will the value of this piece of property increase increase between the years 2007 and 2008?
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
The main question to be answered is: how many years have passed by
since the year of purchase and the years in question, 2007 and
2008? Between 1998 and 2000, there are 2 years, Then between 2000
and 2007 there are 7 years, So there are 9 years between 1998 and
2007. That means there are 10 years between 1998 and 2008.
Just solve the formula for 10 years, then for 9 years, and take
the difference.

then

answer to the nearest dollar

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