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

1. What is the multiplier?

   Answer (a):

   $1.04$ 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.

   Hint (b):

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

   Answer (b):

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

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

   Hint (c):

   Let $t = 10$ in your equation.

   Answer (c):

   $f(t) ≈ $199,833$