A two-bedroom house in Seattle was worth $$400,000$ in 2005. Its appreciation rate is $3.5\%$ each year.

1. How much is the house worth in 2015?

   Hint (a):

   Write an equation based on the general exponential equation: $y = ab^{x}$

   Answer (a):

   about $$564,240$

2. When will it be worth $$800,000$?

   Hint (b):

   Using the equation you wrote in part (a), let $y = 800,000$.

   Answer (b):

   in 2025

3. In Jacksonville, houses are depreciating at $2\%$ per year. If a house is worth $\$200,000$ now, how much value will it have lost in $10$ years?

   Hint (c):

   The multiplier is NOT $0.02$. What percent of the value of a home remains each year if it is depreciating at $2\%$?

   Answer (c):

   about $$36,585$