Answer:
we know that the initial price of the house is $190,000.
We also know that the expected increase is 1.8%, this means that the year zero we have no increase; the price is $190,000.
one year after we have an increase of the 1.8% (or 0.018 in decimal form), this means that the new price is:
$190,000 + $190,000*0.018 = $190,000*(1.018)
another year after, we have:
$190,000*(1.018)*(1.018) = $190,000*(1.018)^2
and etc
The function that models the price as a function of the years, represented as y, is:
P(y) = $190,000*(1.018)^y
If we want to know the price in 5 years, we need to replace y = 5 in the equation:
p(5) = $190,000*(1.018)^5 = $207,726.80
Step-by-step explanation:
hope this helps you
