Answer: Option 1:
y=200,000(1.01)exponent 20
Step-by-step explanation:
The house value appreciates 1% per year. It means that the rate at which it is appreciating is exponential. We would apply the formula for exponential growth which is expressed as
y = b(1 + r)^ t
Where
y represents the value of the house after t years.
t represents the number of years.
b represents the initial value of the house.
r represents rate of growth.
From the information given,
b = 200,000 dollars
r = 1% = 1/100 = 0.01
t = 20 years
Therefore,
y = 200000(1 + 0.01)^20
y = 200000(1.01)^20
