SOLUTION: Your friend Austin decided to invest in real estate. He purchased a house that was worth $181,000, and the value of the house increased by 10% each year for the next several years.

Algebra ->  Finance -> SOLUTION: Your friend Austin decided to invest in real estate. He purchased a house that was worth $181,000, and the value of the house increased by 10% each year for the next several years.      Log On


   

Question 1123921: Your friend Austin decided to invest in real estate. He purchased a house that was worth $181,000, and the value of the house increased by 10% each year for the next several years.
a. The value of the house any given moment is what percent of the value of the house exactly one year prior?
b. What number do we have to multiply the house's value by to determine the house's value one year later?

c. Write a function f that determines the value of the house (in thousands of dollars) in terms of the number of years t since Austin purchased the house.
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let +V+ = the value at year +t+
beginning at year +0+
a)
110%
b)
1.1
c)
+V+=+181%2A%28+1+%2B+.1%29%5Et+
Value of the house in thousands of dollars
+t+ years after purchase