You buys a house for $130,000. It appreciates 6% per year. How much is it worth in 10 years?

Question

Exponential growth or decay?

Write a function that represents this situation:

Initial Amount = ??

Growth\Decay Rate: Percent=?% Decimel=?.?

Answer: 

Answer 1

Let P = price of house today or initial amount

r = percent it appreciates each year or the growth rate

and n = number of years of appreciation

then future price 

= P*(1+r/100)ⁿ

or for this particular example of exponential growth

$130000*(1.06)¹⁰ = $232,810