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 = 170000 (0.97)^t where t is in years

a= 170000

b = 0.97

t value

1 164900

2 159953

3 155154.41

4 150499.7777

5 145984.7844

6 141605.2408

7 137357.0836

8 133236.3711

9 129239.28

10 125362.1016