Suppose that a two-bedroom house in Nashville is worth
How much will it be worth in 10 years?
number of years and value of house. is the initial value of the house and is the multiplier.
When will it be worth
Using the equation in part (a), guess and check values for
. Your answer will be approximate.
In Homewood, houses are depreciating at a rate of
% each year. If a house is worth now, how much will it be worth two years from now?
Write another equation. Note that the value is depreciating this time.