Which of the following equations will produce the graph shown below?

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JAXKBOII213

26.07.2020

Mathematics

Bob's home will worth $296,779.25 after 12 years.

Equation used is $FV = $175,000( 1 + 4.5/100)^(12)\\$

Step-by-step explanation:

Current value of Bob's house = $FV = $175,000( 1 + 4.5/100)^12\\FV = $175,000( (100+ 4.5)/100)^12\\FV = $175,000( (104.5)/100)^12\\FV = $296,779.25$

market is improving at 4.5% annually.

This, means that the value of house gets appreciated by 4.5% each year from its previous year value.

This is a problem of compound interest formula

FV = PV(1+r/100)^n

where PV is the present value of any thing

FV is the future value

r is the annual rate of interest

t is the time in number of year for which rate is applicable.

_____________________________________

Given

PV = $175,000.

r = 4.5%

t = 12 years

Value after 12 year will be given by

$FV = $175,000( 1 + 4.5/100)^(12)\\FV = $175,000( (100+ 4.5)/100)^(12)\\FV = $175,000( (104.5)/100)^(12)\\FV = $296,779.25$

Thus, Bob's home will worth $296,779.25 after 12 years.

Equation used is $FV = $175,000( 1 + 4.5/100)^(12)\\$

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