How much will be the value of a house that was bought 9 years ago?
X Y
0 100,000
1 105,000
2 107,000
3 110,000
4 115,000
5 120,000
6 123,000
7 126,000
8 ?
9 ?
10 ?
tried to find a relation, could not find a definite one.
the graph looks almost linear.
http://www.wolframalpha.com/input/?i=pattern(100,+105,107,110,+115,120,123,126)
(I used units of 1000)
What is your depth of study of this?
Have you learned about "equations or lines of best fit" ?
To determine the value of the house that was bought 9 years ago, we can use the given data points and look for a pattern or trend in the house prices over time.
Looking at the given data, we can observe that the value of the house has been increasing every year, but the rate of increase is not consistent. Here's a breakdown of the data:
X (Years) | Y (House Value)
---------------------------
0 | 100,000
1 | 105,000
2 | 107,000
3 | 110,000
4 | 115,000
5 | 120,000
6 | 123,000
7 | 126,000
8 | ???
9 | ???
10 | ???
Given that the house value increases, we can assume that the trend will continue. However, without any additional information or knowledge about the housing market, it is difficult to predict the exact value for years 8, 9, and 10.
To get a rough estimation, we can calculate the average rate of increase in house value between consecutive years. Let's calculate the average increase between each year:
(105,000 - 100,000) = 5,000
(107,000 - 105,000) = 2,000
(110,000 - 107,000) = 3,000
(115,000 - 110,000) = 5,000
(120,000 - 115,000) = 5,000
(123,000 - 120,000) = 3,000
(126,000 - 123,000) = 3,000
The average rate of increase based on the given data points is approximately $3,571 (average of 5,000, 2,000, 3,000, 5,000, 5,000, 3,000, and 3,000).
To estimate the value of the house 9 years ago, we can calculate the increase using the average rate of increase:
(9 years) x (average increase) = 9 x $3,571 = $32,139
To find the value of the house 9 years ago, we subtract this estimated increase from the current value:
Value of house 9 years ago: $126,000 - $32,139 = $93,861
Please note that this estimation is only based on the average rate of increase from the given data. Actual housing market conditions and other factors could affect the accurate value of the house 9 years ago.