Problema Solution
A new house was sold for $1183000 six years after
it was built and purchased. The original owners calculated that the
house appreciated $53000 per year while they owned it. Find a linear function that describes the appreciation of the building, in thousands of dollars, if x is the number of years since the original purchase.
Answer provided by our tutors
Pt = P0 + 53,000x
For x = 6 we have
1,183,000 = P0 + 53,000*6
P0 = 1,183,000 - 53,000*6
Po = 865,000
The linear function that describes the appreciation of the building is Pt = 865,000 + 53,000x.