Step-by-step explanation:
We have been given a table, which represents the projected value of two different houses for three years.
Part A:
We can see from our given table that the value of house 1 is not increasing at a constant rate, while a linear function has a constant rate of change, therefore, an exponential function can be used to describe the value of the house 1 after a fixed number of years.
We can see from our given table that the value of house 2 is increasing at a constant rat that is $9,000 per year. Since a linear function has a constant rate of change, therefore, a linear function can be used to describe the value of the house 2 after a fixed number of years.
Part B:
Let x be the number of years after Dominique bought the house 1.
Since value of house 1 is increasing exponentially, so let us find increase percent of value of house 1.
Therefore, the growth rate of house 1's value is 3%.
Since we know that an exponential function is in form: , where,
a = Initial value,
b = For growth b is in form (1+r), where, r is rate in decimal form.
Upon substituting our values in exponential function form we will get,
, where, f(x) represents the value of the house 1, in dollars, after x years.
Therefore, the function represents the value of house 1 after x years.
Let x be the number of years after Dominique bought the house 2.
We can see that when Dominique bought house 2 it has a value of $286,000. This means that at x equals 0 value of house will be $286,000 and it will be our y-intercept.
Since value of house 2 is increasing 9000 per year, therefore, slope of our line be 9000.
Upon substituting these values in slope-intercept form of equation we will get,
, where, f(x) represents the value of the house 2, in dollars, after x years.
Therefore, the function represents the value of house 2 after x years.
Part C:
Since values in exponential function increases faster than linear function, so the value of house 1 will be greater than value of house 2.
Let us find the value of house 1 and house 2 by substituting x=25 in our both functions.
We can see that value of house 1 after 25 years will be approx $598,820.48.
We can see that value of house 2 after 25 years will be approx $511,000.
Since $511,000 is less than $598820.48, therefore, value of house 1 is greater than value of house 2.