A three-bedroom house in Burbville sold for $190,000. If housing prices are expected to increase 1.8% annually inthat town, write an explicit formula that models the price of the house in tt years. Find the price of the house in 5years.

Answer: Hello there! we know that the initial price of the house is $190,000. We also know that the expected increase is 1.8%, this means that the year zero we have no increase; the price is $190,000. one year after we have an increase of the 1.8% (or 0.018 in decimal form), this means that the new price is: $190,000 + $190,000*0.018 = $190,000*(1.018) another year after, we have: $190,000*(1.018)*(1.018) = $190,000*(1.018)^2 and etc The function that models the price as a function of the years, represented as y, is: P(y) = $190,000*(1.018)^y If we want to know the price in 5 years, we need to replace y = 5 in the equation: p(5) = $190,000*(1.018)^5 = $207,726.80