A homes value increases at a average rate of 5.5% each yea. The current value is $120,000. What function can be used to find the value of the home after X years?

Answer: the function is

A = 120000 (1.055) ^x

Step-by-step explanation:

A homes value increases at an average rate of 5.5% each year. The growth rate is exponential. We would apply the formula for exponential growth which is expressed as

A = P (1 + r/n) ^ nt

Where

A represents the value of the home after t years.

n represents the period of growth

t represents the number of years.

P represents the initial value of the home.

r represents rate of increase in value.

From the information given,

P = 120000

r = 5.5% = 5.5/100 = 0.055

n = 1

Therefore

A = 120000 (1 + 0.055/1) ^ x * 1

A = 120000 (1.055) ^x