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1. Mr. Rios bought a house in 1960 for $20,000. The value of the house increased by approximately 5% each year. Which of the following equations will give the value, A, the approximate value of the house after x years?

A. \(A = 20000(0.5)^x\)
B. \(A = 20000(1.5)^x\)
C. \(A = 20000(0.05)^x\)
D. \(A = 20000(1.05)^x\)

Answer :

Answer:

A = 20,000(1.05)^x

Step-by-step explanation:

To get the approximate value of the house after x years, we will use the compound interest formula

A = P(1+r)^n

P is the principal = $20,000 (cost of house)

r is the rate = 5% = 0.05

x is the time

Substitute into the expressio

A = 20,000(1+0.05)^x

A = 20,000(1.05)^x

Hence the required expression is A = 20,000(1.05)^x

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