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Zolol [24]
3 years ago
7

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

Mathematics
1 answer:
neonofarm [45]3 years ago
5 0

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)

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