Question

Pria bought a new home in 2012. The value of the home increased exponentially each year. The value of the home in 2014 was $227,136. In 2016, the home was worth $245,670.How much did Pria pay for the home in 2012?(1 point)Responses$227,136$227,136$210,000$210,000$245,670$245,670$190,068

Answer 1

Let V be the 2012 price and r the annual growth factor. Then
V(2014) = V r^2 = 227,136 and V(2016) = V r^4 = 245,670, so r^2 = 245,670/227,136 = 1.0816, r = 1.04.
Thus V = 227,136/(1.04)^2 = 227,136/1.0816 = 210,000.

Answer: $210,000.