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 = abx
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.