Heather and joel bought a house for $157,200 and know that the house appreciates every year. they keep track of their house value for 5 years and model their data with the exponential equation y = 150000(1.004)12t how much will their house be worth in 8 years?

Heather and Joel bought a house for $157,200 and know that the house appreciates every year. They keep track of their house value for 5 years and model their data with the exponential equation y = 150000(1.004)12t How much will their house be worth in 8 years?

Solution:

Equation of the appreciation of the value of house is given by:-

We need to find the worth of the house after 8 years

So, that means time, t=8

Let us plug t=8 in the equation

So, we get,

y=150000*1.467021

y=220053.20

In 8 years the value appreciates to $220053.20, that s, worth of house after 8 years=$22005320

We have to find value of the house in 8 years so we will plug t=8 years in given equation.

Hence house will worth approx $220053.20 in 8 years.