For the scenario, create an exponential function (y=a⋅bx), then answer the questions that follow.

Question

A family bought a house for $179,000. After that, the housing market begins to decline, thereby lowering the value 3% per year (modeled as .97). 

1) a = 

2) ​b = 

3) Exponential Function: 

4) How much will the house be worth after 5 years? (round to the nearest whole number)

5) How much will the house be worth after 10 years?  (round to the nearest whole number)

Answer 1

y = ab^t

A family bought a house for $179,000.

1) a = $179,000

After that, the housing market begins to decline, thereby lowering the value 3% per year (modeled as .97). 

2) ​b = .97

3) Exponential Function: y = 179,000 (.97) ^t

4) How much will the house be worth after 5 years? (round to the nearest whole number)

t = 5, plug this t value in equation

5) How much will the house be worth after 10 years? (round to the nearest whole number)

t = 10, plug this t value in equation