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3 years ago

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At the start of 2014 lucys house was worth ?200 000. The value of the house increased by 5% every year. Workout the value of her

house at the start of 2017

1 answer:

Galina-37 [17]3 years ago

3 0

Answer:

The value of Lucys house at the start of 2017 is 231525.

Step-by-step explanation:

It is given that the initial value of Lucys house is 200,000. The at the start of 2017.

The exponential function is defined as

$P=P_0(1+r)^t$

Where, P₀ is initial value, r is growth rate, t is time in years.

The value of house is defined by the function

$P=200000(1+0.05)^t$

Where, t is number of years after 2014.

$P=200000(1.05)^t$

The difference between 2017 and 2014 is 3 years.

$P=200000(1.05)^3=231525$

Therefore the value of Lucys house at the start of 2017 is 231525.

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