Answer:
The equation is an exponential growth equation.
$228,000 represents the initial cost of a real estate that appreciates 3% per year over the course of years.
Step-by-step explanation:
the correct equation is: V(C)=228,000(1.03)^t
Hi, to answer this question we have to apply an exponential growth equation:
A = P (1 + r) t
Where:
p = initial cost
r = growing rate (decimal form)
t= years
A =cost after t years
Before applying the formula:
1.03 = 1+r
1.03-1 =r
0.03=r
Replacing with the values given:
A = 228,000 (1+ 0.03)^t
r = 0.03
Since r is in decimal form, we have to multiply it by 100
0.03 x 100 = 3% appreciation per year
Feel free to ask for more if needed or if you did not understand something.
