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A six-year old house, now worth $, has had an annual appreciation of %.  

  1. What is the multiplier?

    Because the house value is appreciating, the multiplier must be greater than .

  2. What did it cost when new?

    Substitute the information in the problem into the generic exponential function.
    Then calculate backwards to find the original value.

  3. Write a function of the form , where t is the time in years, that represents the value of the house since it was new.