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Sagot :
Answer
Number of years 1 2 3
House 1 (value in dollars) 249,000 253,980 259,059.60
House 2 (value in dollars) 249,000 256,000 263,000
House 1: exponential function
House 2: linear function
House 1: f(x) = 249,000 * (1.02)^(x-1)
→ f(3) = 249,000 * (1.02)³⁻¹ = 249,000 * (1.02)² = 259,059.60
House 2: f(x) = 249,000 + 7,000(x-1)
→ f(3) = 249,000 + 7,000(3-1) = 249,000 + 7,000(2) = 249,000 + 14,000 = 263,000
House 1:
f(45) = 249,000 * (1.02)⁴⁵⁻¹ = 249,000 * (1.02)⁴⁴ = 249,000 * 2.39 = 595,110
House 2:
f(45) = 249,000 + 7,000(45-1) = 249,000 + 7,000(44) = 249,000 + 308,000 = 557,000
House 1 will have a greater value than House 2 after 45 years.
Step-by-step explanation:
Hope this helps, if not let me know and I will fix it.
Part A
The value for house 1 follows an exponential growth function since the value is increasing by 2% each year. This is because we multiply each value by 1.02 to get the next year's value.
- 249,000*1.02 = 253,980
- 253,980*1.02 = 259,059.60
- 259,059.60*1.02 = 264,240.792 = 264,240.79
In contrast, house 2's value increases by the same amount each year (7000 per year)
- 249,000 + 7,000 = 256,000
- 256,000 + 7,000 = 263,000
- 263,000 + 7,000 = 270,000
This fixed amount it increases directly leads to house 2 having linear growth.
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Summary:
- House 1 = exponential function
- House 2 = linear function
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Part B
The equation for house 1's value is y = 249000(1.02)^x
This is in the form y = ab^x, where a = 249000 is the starting value and b = 1.02 is the growth rate factor.
We can think of 1.02 as 1+0.02 to represent the 2% growth.
In other words, 1.02 = 1+r solves to r = 0.02 = 2%
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The equation for the second home's value is y = 7000x+249000
The slope m = 7000 tells us how the value is going up per year.
The y intercept b = 249000 is the original home value (when x = 0).
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Summary:
- Equation for home 1 is f(x) = 249000(1.02)^x
- Equation for home 2 is f(x) = 7000x+249000
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Part C
Let's plug x = 45 into each equation mentioned in part B
For home 1, we have
f(x) = 249000(1.02)^x
f(45) = 249000(1.02)^45
f(45) = 607,025.697
f(45) = 607,025.70
So that's the value of home 1 after 45 years of constant 2% growth per year
For the second home, we have,
f(x) = 7000x+249000
f(45) = 7000*45+249000
f(45) = 564,000
So there is a significant difference. This difference is 607,025.70 - 564,000 = 43,025.70 dollars.
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Summary:
- Home 1's value = $607,025.70
- Home 2's value = $564,000
- This is a difference of $43,025.70 which is fairly significant. It's better to go with home 1.
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