Answer:
f(x) = 12,000(1.08)^x
Step-by-step explanation:
The equation required may be determined mathematically as follows by illustrations beginning from 1 to 2.... A pattern will be observed which will then give credence to what the equation should look like.
Given that the value of a plot of land is $12,000. Each year, the value of the plot increases by 8%
After the first year i.e from 2001 to 2002, the value increases to
= $12,000 + (8% * $12,000)
= $12,000 (1.08)
After the second year i.e 2002 to 2003, the value increases to
=$12,000(1.08) + ($12,000(1.08) *0.08)
= $12,000(1.08) (1.08)
= $12,000(1.08)²
By the pattern, after x years, the value of the land will be
= $12,000(1.08)ˣ
