Question

A $100,000 house appreciates at a rate of $3500 a year. a.Find the equation that models the value of the house in y dollars after x years. b.Find the value of the house in 12

Answer 1

y = 100,000 + 3500x

$142,000

Explanation:

a. The fixed cost is 100,000 while appreciation is 3, 500/year.

Now after x years, total appreciation equals 3,500 × x = 3500x

The total amount in dollars is thus :

y = 100,000 + 3500x.

b. The value of the house in 12 years.

Since y = 100,000 + 3500x, here, y = ? and x = 12.

y = 100,000 + 3500(12) = 100,000 + 42,000 = $142,000