Answer:
$103,768
Step-by-step explanation:
Let x be the number of years after Tammy purchased her home.
We have been given that Tammy’s home cost her $184,000. She lives in an area with a lively real estate market, and her home increases in value by 3.5% every year.
We can see that value of house will increase exponentially as the value of increases 3.5% per year.
Since an exponential function is in form: [tex]y=a*b^x[/tex], where,
a = Initial value,
b = For growth b is in form (1+r) where r represents growth rate in decimal form.
Let us convert our given growth rate in decimal form.
[tex]3.5\%=\frac{3.5}{100}=0.035[/tex]
Upon substituting our values in exponential form of function we will get the value (y) of Tammy's home after x years as:
[tex]y=184,000(1+0.035)^x[/tex]
[tex]y=184,000(1.035)^x[/tex]
Therefore, the function [tex]y=184,000(1.035)^x[/tex] represents value of Tammy's home after x years of purchase.
Let us find the value of home after 13 years by substituting x=13 in our function.
[tex]y=184,000(1.035)^{13}[/tex]
[tex]y=184,000*1.5639560603534843[/tex]
[tex]y=287767.915[/tex]
Let us subtract cost of the home from the value of home after 13 years to find the amount of profit.
[tex]\text{The amount of profit, if Tammy sells her home after 13 years}=287,767.915-184,000[/tex]
[tex]\text{The amount of profit, if Tammy sells her home after 13 years}=103,767.915\approx 103,768[/tex]
Therefore, Tammy will have made a profit of $103,768.
Answer:
$103,800, rounded to nearest 100 dollars, answer B on e2020. :)
Step-by-step explanation:
