Using an exponential function, it is found that it's approximate value six years from now will be of $367,679.
<h3>What is an exponential function?</h3>An increasing exponential function is modeled by:
In which:
- A(0) is the initial value.
- r is the growth rate, as a decimal.
In this problem:
- Josh Collins plans to buy a house for $245,000, hence
.
- That real estate is expected to increase in value by 7 percent each year, hence
Then:
In six years, we have that , hence, the value will be of:
You can learn more about exponential functions at brainly.com/question/25537936