Suppose that a two-bedroom house in Nashville is worth
How much will it be worth in
Let x = number of years and
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.
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.