Answer:
The statements that are true for this equation are:
- 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:
We have the equation
[tex]V= 228,000(1.03)^t[/tex]
Where V: value of the real state and t: time in years.
As t is always positive in this case, and 1.03 is larger than 1, the value V will rise exponentially. The equation is an exponential growth equation.
The difference in value for each year is:
[tex]\dfrac{V_{t+1}}{V_t}=\dfrac{1.03^{t+1}}{1.03^t}=1.03^{t+1-t}=1.03\\\\\\V_{t+1}-V{t}=1.03V_t-V_t=0.03V_t[/tex]
We can conclude that the value increases each year 0.03 (3%) from the previous year value, starting from $228,000 in the year t=0.
$228.000 represents the initial cost of a real estate that appreciates 3% per year over the course of years.
