Question

Yacouba purchased a three bedroom house in Kingwood, TX for $185,000. Housing prices are expected to increase 2.1% annually.Which of the following functions best represents the price of the house after x years?

Answer 1

The equation for the price of house after x years is,

$f(x)=185000(1+\frac{2.1}{100})^x$

Simplify the equation to obtain the equation for value of house after x years.

$\begin{gathered} f(x)=185000(1+0.021)^x \\ =185000(1.021)^x \end{gathered}$

So option B is correct.