Question

John is thinking about buying a house for $179,000. The table below shows the projected value of two different houses for three years.

Number of years 1 2 3
House 1 (value in dollars) 186,160 193,606.40 201,350.66
House 2 (value in dollars) 190,000 201,000 212,000

Part A: What type of function, linear or exponential, can be used to describe the value of each of the houses after a fixed number of years? Explain your answer.

Part B: Write one function for each house to describe the value of the house f(x), in dollars, after x years.

Part C: John wants to purchase a house that would have the greatest value in 30 years. Will there be any significant difference in the value of either house after 30 years? Explain your answer, and show the value of each house after 30 years.

Thanks for the help!

Answer 1

A. Is the amount of change each year constant? Or does the actual change keep increasing? Linear means a constant change rate.

B. should not be too hard

C. Clearly there will be a major difference, if the table's trend continues.

Answer 2

Part B: Write one function for each house to describe the value of the house f(x), in dollars, after x years.

I have f(x) = 110,000(x) as a function for House 2 but what about House 1? Since House 1 progresses at an exponential rate I don't know what to do.

Answer 3

Also, for Part C, obviously I know theirs going to be an increase what I need help with was the value of each house after 30 years.