Correct answer gets 1 billion dollars through pay $$ pal

-

Alex buys a home for $276,400. His home is predicted to increase in value 3.5% each year.

What is the predicted value of Alex's home in 25 years?

Round your answer to the nearest dollar.

A/ / 621,357

B/ / 635,191

C/ / 653,201

D/ / 673,415

The correct answer is C) 653,201

Step-by-step explanation:

In order to calculate out this, start with the base cost. You then can make an exponential equation using the percentage. Since it will be 103.5% of the previous year's cost, raise that to the variable.

f (x) = 276,400 (1.035) ^x

In this equation, x is the number of years. So we can plug 25 in for that variable and then calculate.

f (x) = 276,400 (1.035) ^25

f (x) = 276,400 (2.363)

f (x) = 653,201

y = 653201.

Step-by-step explanation:

We can use the formula

y = ab^x

where a = initial amount and b = 1+growth rate (in decimal form) and x = number of years

a = 276400

b = 1+.035

x = 25

y = 276400 (1+.035) ^25

y = 276400 (1.035) ^25

y = 653201.