Question

A home’s value increases at an average rate of 5.5% each year. The current value is $120,000. What function can be used to find the value of the home after x years?

Answer 1

f(x) = 120,000(1.055)x

Explanation:

Answer 2

For the answer to the question above,
5.5% converted to a decimal is 0.055.
However, the house already retains 100% of it's value each year, with 5.5% as an increase.
therefore we can use the function f(x) = 120,000(1.055)x to solve this.