Question

The value of Desmond's home is modeled by the function V (x) = 275,000(1.09) ²/³x, where x is the number of years since 2012. By what approximate percentage rate is the value of Desmond's home increasing per year?

Answer 1

• 6%

Explanation:

Given function

• V(x) = 275000(1.09)^(2/3x)

Every year the value is changing at the rate:

• (1.09)^(2/3) = 1.059 ≈ 1.06

The rate of 1.06 is equivalent of 6% increase per year