Which statement (s) can be interpreted from the equation for a real estate value, V (C) = 228,000 (1.03) ' where V (C) represents the value of the real estate and t represents the time in years?

The equation is an exponential growth equation.

The equation is an exponential decay equation

The equation is neither exponential decay nor exponential growth

$228,000 represents the initial cost of a real estate that appreciates 3% per year over the course of years.

$228,000 represents the initial cost of a real estate that appreciates 30% per year over the course of t years

$228,000 represents the initial cost of a real estate that depreciates 3% per year over the course of t years

$228,000 represents the initial cost of a real estate that depreciates 30% per year over the course of t years

Question

Mathematics

Denise Kaiser

15 September, 15:39

Which statement (s) can be interpreted from the equation for a real estate value, V (C) = 228,000 (1.03) ' where V (C) represents the value of the real estate and t represents the time in years?

The equation is an exponential growth equation.

The equation is an exponential decay equation

The equation is neither exponential decay nor exponential growth

$228,000 represents the initial cost of a real estate that appreciates 3% per year over the course of years.

$228,000 represents the initial cost of a real estate that appreciates 30% per year over the course of t years

$228,000 represents the initial cost of a real estate that depreciates 3% per year over the course of t years

$228,000 represents the initial cost of a real estate that depreciates 30% per year over the course of t years

+2

Answers (1)

Know the Answer?

Adolfo Garner · Answer 1

The equation is an exponential growth equation.

$228,000 represents the initial cost of a real estate that appreciates 3% per year over the course of years.

Step-by-step explanation:

the correct equation is: V (C) = 228,000 (1.03) ^t

Hi, to answer this question we have to apply an exponential growth equation:

A = P (1 + r) t

Where:

p = initial cost

r = growing rate (decimal form)

t = years

A = cost after t years

Before applying the formula:

1.03 = 1+r

1.03-1 = r

0.03=r

Replacing with the values given:

A = 228,000 (1 + 0.03) ^t

r = 0.03

Since r is in decimal form, we have to multiply it by 100

0.03 x 100 = 3% appreciation per year

Feel free to ask for more if needed or if you did not understand something.