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Bess [88]
3 years ago
7

Tammy's home cost her S184,000. She lives in an area with a lively real estate market, and her hormincreases in value by 3.5%

Mathematics
2 answers:
Ivenika [448]3 years ago
5 0

Answer:

  • D. $103800

Step-by-step explanation:

<u>Initial value of house:</u>

  • $184000

<u>Yearly increase rate of value:</u>

  • 3.5%

<u>Time </u>

  • 13 years

Since the increase is concerning the current price it would be exponential growth.

<u>The function would be:</u>

  • V(t) = 184000*(1 + 3.5/100)^t, where V is the value after t years

<u>For t= 13 we get:</u>

  • V(13) = 184000*(1.035)^13 = 287800

<u>Profit made would be:</u>

  • 287800 - 184000 = 103800

Correct option is D.

Afina-wow [57]3 years ago
5 0

Answer:

Cost of Tammy's house =$184000

Rate of interest = 3.5% per annum

After 13years price will be

P(t) = 184000 {(1 +  \frac{3.5}{100}) }^{t} \\ P(t) =  184000 {(1 + 0.035)}^{t} \\ P(13) = 18400 {(1.035)}^{13}   \\ P(13) =\$ 287768

Total profit= $(287767-184000)= $103768

<h2>D. $103800 is the right answer.</h2>
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