Question

Suppose the homes in Arizona have appreciated an average of 8% per year in the last years.

Answer 1

Answer:

$V = P(1+\frac{8}{100} )^{t}$

V = 524618.77

Step-by-step explanation:

If the homes in Arizona have appreciated an average of 8% per year rate in the last year,

If the average home in a suburb sold for 225000 in 2019, then after t years since 2019, the value will be $V = 225000(1+\frac{8}{100} )^{t}$

Therefore, the equation of model is $V = P(1+\frac{8}{100} )^{t}$. (Answer)

Now, in the year 2030, t will become (2030 - 2019) = 11 years,

$V = 225000(1+\frac{8}{100} )^{11}$

⇒ V = 524618.77 (Answer)