Question

The Smith family paid $89,250 for their home. The value of the home increases4.5% each year.Create an equation that represents the value, v, of the house after t years.

Answer 1

We have the following:

In this case we would have a multiplication between the initial value and 100% added to the increase each year

$v=89250\cdot(1+0.045\cdot t)$