A six‑year old house, now worth
If you want to calculate the value of the house at a given time, what is the multiplier you need to use in this situation?
Because the house value is appreciating, the multiplier must be greater than
What did the house cost when it was new?
Substitute the information in the problem into the generic exponential function.
Then calculate backwards to find the original value.
Write a function of the form
that represents the value of the house years after it was first built.