The median price, P, of a home rose from $50 thousand in 1980 to $150 thousand in 2000. Let t be the number of years since 1980. If instead the housing prices increased exponentially, find an equation of the form P = Poa t to represent housing prices. Again, P is measured in thousands. (Round your answer for a to 6 decimal places.)

Question

Makena Mckee

12 May, 22:55

+2

Answers (1)

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Rylee · Answer 1

150,000 = 50000a^20

a^20 = 150000/50000 = 3

a = 20th root of 3 = 1.056467

Required equation is P = 50000 (1.056467) ^t