Question

45. Real Estate Appreciation Bob Michaels purchased a

Answer 1

Answer:

a)

Since t is between 0 and 15, and the house was purchased 8 years ago, we have two pairs of values:

• t = 0, V(0) = 42000
• t = 8, V(8) = 67500

Find the slope, m:

• m = (67500 - 42000)/8 = 3187.50

The value of b is 42000, since at t = 0, V = 42000

So the equation is:

• V = 3187.50t + 42000

b)

The graph is attached.

When V = 72500, t = 9.6 (approximately)

c)

When V = 74000

• 74000 = 3187.5t + 42000
• 3187.5t = 32000
• t = 32000/3187.5
• t ≈ 10 years (rounded down)

d)

When V = 80250

• 80250 = 3187.5t + 42000
• 3187.5t = 80250 - 42000
• 3187.5t = 38250
• t = 38250/3187.5
• t = 12 years