### Home > CAAC > Chapter 13 > Lesson 13.OF2-S > Problem 7-147

7-147.

Suppose that a two-bedroom house in Nashville is worth $110,000 and appreciates 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?

General form: *y* = *ab ^{x}*

Let *x* = number of years and *y* = value of house. Write an equation using the general form of the exponential equation.

*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.