Question #8 - Writing an Exponential Function
A house was purchased in 1994 for $118,000. Given a 4% increase each year, choose the correct exponential function that represents this scenario.
The correct exponential function for this scenario would be:
\[ P(t) = 118000(1.04)^t \]
where:
- \( P(t) \) represents the value of the house after \( t \) years
- 118000 is the initial value of the house in 1994
- 1.04 represents the 4% increase each year
- \( t \) is the number of years since 1994