9514 1404 393
Answer:
- v(t) = $342,000×1.06^t
- v(8) = $545,096
- v(15) = $819,623
Step-by-step explanation:
When the growth (or decay) amount is a fraction or percentage of the current amount, an exponential model is indicated. Here, it will be of the form ...
value = (initial value) × (1 + (growth rate))^t
where t is the time period corresponding to the growth rate.
We are given that the initial value is $342,000 and the growth rate is 6% in a year. So, the model can be ...
value = 342,000×1.06^t . . . . . where t is years after 2017
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In 2025, we are 8 years after 2017, so the value is predicted to be ...
value = $342,000×1.06^8 ≈ $545,096 . . . in 2025
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In 2032, we are 15 years after 2017, so the value is predicted to be ...
value = $342,000×1.06^15 ≈ $819,623 . . . in 2032
