Question

In the year 2002, the rent in Chamomile Town was $1130, and it increases by 1.85% per year. Write a function f(t) for the rent in Chamomile City t years after 2002.

Answer 1

The average monthly rent in Lavender Town is also growing exponentially.
In the year 2010, the rent in Lavender Town was $250 less than the rent in Chamomile Town. In the year 2018, the rent in Lavender Town is $1500.
Write a function g(t) for the rent in Lavender Town t years after 2002.

Answer 2

f(t) = 1130 * 1.0185^t
f(8) = 1308.48, so
g(8) = 1058.48
g(0) = 1058.48 * (1+r)^-8
g(16) = g(0) * (1+r)^14 = 1500
so, 1058.58 * (1+r)^6 = 1500
r = 0.0598
g(0) = 665.17
g(t) = 665.17 * 1.0598^t

Answer 3

oops. I see a typo. fix it and redo the last few steps.