a In the function, a is the initial value and b is the multiplier.
B
b Substitute t=10 into the function and evaluate.
A
a f(t)=135 000(1.04)^t
B
b $199 833
Practice makes perfect
a A function of the form f(t)=ab^t is an exponential function where a is the initial value and b is the multiplier. From the exercise we know that the annual appreciation is 4 % = 0.04 and the initial value is a= 135 000. We can get the multiplier b by adding 1 to the annual appreciation.
b = 1 + 0.04 = 1.04
Let's substitute the initial value and the multiplier into the function.
f(t)= 135 000( 1.04)^t
b By substituting t=10 into the function, we can calculate the value after 10 years.
