Suppose that a two-bedroom house in Nashville is worth
How much will it be worth in
number of years and value of house. Write an equation using the general form of the exponential equation. is the initial value of the house, and is the multiplier.
When will it be worth
Using the equation in part (a), guess and check values for
. Your answer will be approximate.
In Homewood, houses are depreciating at a rate of
each year. If a house is worth now, how much will it be worth two years from now?
Write another equation. Note that the value is depreciating this time.