Question

Jessa bought her home for $125,000 in 2010 Property values have increased 15% every year since she has owned the home. Which of the following equations can be used to represent the price of the home x years after 2010?

y = 125,000(1 15)
y = 125 000(125)
y = 125,000(085)
y = 125.000(075)

Answer 1

y= 125,000 (1.15x)

Explanation:

Answer 2

A.
`y=125,000\cdot (1.15)^x`

Explanation:

We have been given that Jessa bought her home for $125,000 in 2010 Property values have increased 15% every year since she has owned the home.

We can see that increase in value of house is not constant, so the value of house in increasing exponentially.

We know that an exponential function is in form
`y=a\cdot b^x`, where,

a = Initial value,

b = For growth b is in form
`(1+r)`, where r represents growth rate in decimal form.

`r=(15)/(100)=0.15`

`y=125,000\cdot (1+0.15)^x`

`y=125,000\cdot (1.15)^x`

Therefore, the equation
`y=125,000\cdot (1.15)^x` represents the price of the home x years after 2010.