Question

The following function represents the value of a house after x years:

f(x) = 242,000(0.96)x

What does 0.96 represent?

The present value of the house
The value of the house after x years
The increase in the value of the house per year, which is 4%
The decrease in the value of the house per year, which is 4%

Answer 1

Hi there!

The answer is the decrease in the value of the house per year, which is 4%.

The present value of the house is represented by 242,000.

The value of the house after x years is represented by the entire function f(x) = 242,000(0.96)^x.

Hence, 0.96 represents the decrease in value per year (since it represents the factor of growth, and is smaller than 1, so we're dealing with a decrease), which is 4%.

Answer 2

Answer: The decrease in the value of the house per year, which is 4%

Explanation:

Hi, to answer this question we have to analyze the expression given:

F(x) = 242,000(0.96) x

F(x) represents the value of the house after x years

242,000 represent the actual value of the house

X represents the years

0.96 is affecting the present value of the house, and is a number smaller than 1, by 0.04(if we multiply 0.04 by 100 we obtain the percentage which is 4%).

So, it represents the decrease in the value of the house per year, which is 4%.