Problema Solution
A house is purchased for $140,000 in January 2004. A year later, the house next door is sold for $149,800. The two houses are of the same style and size and are in similar condition, so they should have equal value.
Use the model
v = 140e0.0676586485t,
where t is the number of years after January 2004 and v is the value in thousands of dollars, to predict when the house would be worth $290,000.
Answer provided by our tutors
v = 140e^(0.0676586485t)
In the year of 2004, t = 0 and v = 140 thousands of dollars.
We need to find t such that v = 290 thousands of dollars that is:
140e^(0.0676586485t) = 290
e^(0.0676586485t) = 290/140
e^(0.0676586485t) = 29/14
........
click here to see the equation solved for t
........
t = 10.76 years
10.76 years after 2004 the house would be worth $290,000.