celeste117 celeste117
  • 15-05-2020
  • Mathematics
contestada

You buy a house for $130,000. It appreciates 6% per year for 10 years. This problem is considered what type of function?

Respuesta :

308778 308778
  • 15-05-2020

Answer:

$232,810

Step-by-step explanation:

Let P = price of house today or initial amount

r = percent it appreciates each year or the growth rate

and n = number of years of appreciation

then future price

= P*(1+r/100)n

or for this particular example of exponential growth

$130000*(1.06)10 = $232,810

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