Answer:
<em>a) </em><em />
<em>b) Nicki's house is worth $281,143 in 4 years</em>
Step-by-step explanation:
<u>Exponential Growth Function
</u>
The exponential function is commonly used to model natural growing or decaying processes where the change is proportional to the actual quantity.
An exponential growth function is expressed as:
Where:
C(t) is the actual value of the function at time t
Co is the initial value of C at t=0
r is the growth positive rate, expressed in decimal
Nicki paid Co=$245,000 for a house and it's known that home prices increase by r=3.5%=0.035 each year.
a)
Substituting the given values, the equation is:
b) The value of Nicki's house in t=4 years is:
Nicki's house is worth $281,143 in 4 years