A) Write the exponential equation to represent a house purchased for

$120,000 has an annual appreciation of 6%.

= A (t) = 120000 (1.06) ^t t = 1 year

We just add ^12 to equal 1/12 months.

Then use the notation below.

Step-by-step explanation:

We simply want to write an equivalent form of the same equation that will allow for the time period to be calculated in years.

For one year, t = 1, we want it to grow 6% = 1.06

Yearly Rate of Growth annual equation: = 7200

P (i) 7200 / 120000 x 100% = 6% per year growth rate

the yearly growth factor is 1 + appreciation rate = 1+i = 1+0.06 = 1.06

So time in years can be added to t

= A (t) = 120000 (1.06) ^t t = 1 year

The yearly growth factor = 1.06

To equate monthly we add the exponent t*12*1/12 before 120000 (1.06) ^t

then add 1/12 to replace ^t = monthly, or just keep the t = time

A (t) = 120000 (1.06) ^12t