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). According to

Algebra ->  Functions -> 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). According to      Log On


   

Question 71853: 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). According to this model, by how much will the value of this piece of property increase between the years 2007 and 2008?
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Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
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). According to this model, by how much will the value of this piece of property increase between the years 2007 and 2008?
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Value in 1998:50000
Value in 2007: 50,000(1.05)^9=77566.42
Value in 2008: 77566.42(1.05)=81444.73
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Increase = $3878.32
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Cheers,
Stan H.