Word Problem: Linear Model

Question

In 1980 an average price of a home in Brainerd County was $99,000. By 1987 the average price of a home was $134, 000. Create a linear model for the price of a home, P, in Brainerd County in terms of the year, t. Let t=0 to correspond to 1980.

Answer 1

Morgan,

 

Price in 1980 is $99,000

 

In 1987 price is $134,000

 

In 7 years the price increase is 134,000 - 99,000 = 35,000

 

Since it is a linear model price increase per year = 35,000/7 = 5000

 

So the model is 

 

P = 99,000 + 5000*t