alex buys a home for 118000. her home increases in value 9% each year. write an equation that models this and find the value of the home after 6 years?
value in 6 years = 118000(1.09)^6
= ....
Okay thanks but what would the equation look like?
ummhhh,
value in 6 years = 118000(1.09)^6
To write an equation that models the increase in the value of Alex's home, we'll use the formula for calculating compound interest:
A = P(1 + r)^n
Where:
A = Final value of the home
P = Initial value of the home
r = Annual interest rate
n = Number of years
In this case, the initial value of the home (P) is $118,000, and the annual interest rate (r) is 9%. We need to find the value of the home after 6 years (n = 6).
Substituting the given values into the formula:
A = 118,000(1 + 0.09)^6
Now we can calculate the value of the home after 6 years by evaluating the expression:
A = 118,000(1.09)^6
Calculating this expression yields:
A ≈ $188,044.89
Therefore, the value of the home after 6 years is approximately $188,044.89.