The following function represents the value of a house after x years: f (x) = 242,000 (0.96) x What does 0.96 represent?

Because the 0.96 is less than 1, it means that the house loses value over the years.

Convert 0.96 to a percent: 0.96 = 96%

100% - 96% = 4%

The house loses 4% of it's value every year.