Answer:
The value of Lucys house at the start of 2017 is 231525.
Step-by-step explanation:
It is given that the initial value of Lucys house is 200,000. The at the start of 2017.
The exponential function is defined as
[tex]P=P_0(1+r)^t[/tex]
Where, P₀ is initial value, r is growth rate, t is time in years.
The value of house is defined by the function
[tex]P=200000(1+0.05)^t[/tex]
Where, t is number of years after 2014.
[tex]P=200000(1.05)^t[/tex]
The difference between 2017 and 2014 is 3 years.
[tex]P=200000(1.05)^3=231525[/tex]
Therefore the value of Lucys house at the start of 2017 is 231525.
