<PRE><B>Question 93514</B>
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.
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