### Home > INT3 > Chapter 6 > Lesson 6.3.1 > Problem 6-85

6-85.

Suppose that a two-bedroom house in Nashville is worth $110,000 and is appreciating at a rate of 2.5% each year. Homework Help ✎

How much will it be worth in 10 years?

When will it be worth $200,000?

In Homewood, houses are depreciating at a rate of 5% each year. If a house is worth $182,500 now, how much will it be worth two years from now?

*y* = *ab ^{x}*

Let *x* = number of years and *y* = value of house. *a* is the initial value of the house and *b* is the multiplier.

*y* = 110,000(1.025)^{x}

Using the equation in part (a), guess and check values for *x*. Your answer will be approximate.

Write another equation. Note that the value is depreciating this time.