SOLUTION: If a piece of real estate purchased for $75,000 in 1998 appreciates at the rate og 6% per year, then its value t years after the purchase will be f(f)=75,000(1.06^t). According to

Algebra ->  Trigonometry-basics -> SOLUTION: If a piece of real estate purchased for $75,000 in 1998 appreciates at the rate og 6% per year, then its value t years after the purchase will be f(f)=75,000(1.06^t). According to       Log On


   

Question 93514This question is from textbook Algebra and Trigonometry
: If a piece of real estate purchased for $75,000 in 1998 appreciates at the rate og 6% per year, then its value t years after the purchase will be f(f)=75,000(1.06^t). According to this model, by how much will the value of this piece of property increase between the years 2005 and 2008? This question is from textbook Algebra and Trigonometry

Answer by stanbon(75887) About Me  (Show Source):
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If a piece of real estate purchased for $75,000 in 1998 appreciates at the rate og 6% per year, then its value t years after the purchase will be f(t)=75,000(1.06^t). According to this model, by how much will the value of this piece of property increase between the years 2005 and 2008?
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Value in 2008: 75000(1.06)^10
Value in 2005: 75000(1.06)^7
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Increase between 2005 and 2008:
75000(1.06^10 - 1.06^7) = 75000*0.2872174376... = $21,541.31
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Cheers,
Stan H.