### Home > CCG > Chapter Ch8 > Lesson 8.1.4 > Problem8-41

8-41.

A house purchased for $135,000$ has an annual appreciation of $4$%.

1. What is the multiplier?

$1.04$ because you add the decimal percentage to the whole $(1 + 0.04)$.

2. Write a function of the form $f(t) = ab^t$ that represents the situation, where $t$ is the time in years after the house was purchased.

$a$ = the initial value $b$ = the multiplier

$f(t) = 135000(1.04)^t$

3. At the current rate, what will be the value of the house in 10 years?

Let $t = 10$ in your equation.

$f(t) ≈ 199,833$