Suppose that the dollar value v(t) of a certain house that is t years old is given by the following exponential function.

Question

v(t)=320,000(1.06)²

1. Find the initial value of the house
2. Does thr function represent growth or decay
3. By what percent does the value of the house change each year?

Answer 1

I assume you meant

v(t) = 320,000(1.06)^t

1. Original value is when t = 0, v(0) = 320,000
2. This is a growth formula since for v(t)=P(1+r)^t, 1+r >0
3. r = 0.06 or 6%