### Home > CCA2 > Chapter Ch6 > Lesson 6.1.4 > Problem6-52

6-52.

Suppose that a two-bedroom house in Nashville is worth $\110,000$ and appreciates at a rate of $2.5\%$ each year. Homework Help ✎

1. How much will it be worth in $10$ years?

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.

$y=110,000(1.025)^x$

2. When will it be worth $\200,000$?

Using the equation in part (a), guess and check values for $x$. Your answer will be approximate.

3. 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?

Write another equation. Note that the value is depreciating this time.