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A six-year old house, now worth , appreciates at an annual rate of .

  1. 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 .

  1. 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.

  2. Write a function of the form that represents the value of the house years after it was first built.