Answered

Tammy's home cost her S184,000. She lives in an area with a lively real estate market, and her hormincreases in value by 3.5%
every year. If Tammy sels her home after thirteen years, how much profit wil she have made, to the nearest hundred dollars?
a s8,500
b.
C.
d
7,800
S83,700
S103,800
Please select the best answer from the choices provided
O
A
B
C
D
O
Save and Exit
Next
Submit
Answer D 103,800

Answer :

MHANIFAGO

Answer:

  • D. $103800

Step-by-step explanation:

Initial value of house:

  • $184000

Yearly increase rate of value:

  • 3.5%

Time

  • 13 years

Since the increase is concerning the current price it would be exponential growth.

The function would be:

  • V(t) = 184000*(1 + 3.5/100)^t, where V is the value after t years

For t= 13 we get:

  • V(13) = 184000*(1.035)^13 = 287800

Profit made would be:

  • 287800 - 184000 = 103800

Correct option is D.

MANISSAHA129GO

Answer:

Cost of Tammy's house =$184000

Rate of interest = 3.5% per annum

After 13years price will be

[tex]P(t) = 184000 {(1 + \frac{3.5}{100}) }^{t} \\ P(t) = 184000 {(1 + 0.035)}^{t} \\ P(13) = 18400 {(1.035)}^{13} \\ P(13) =\$ 287768[/tex]

Total profit= $(287767-184000)= $103768

D. $103800 is the right answer.

Go Question: Other Questions