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

Algebra ->  Exponential-and-logarithmic-functions -> 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      Log On


   

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) About Me  (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) About Me  (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