Answer:
The right answer is:
(a) [tex]P(t) = P_o \ e^{0.03536t}[/tex]
(b) [tex]t = 14 \ years \ 6 \ months[/tex]
(c) [tex]P(t) = =621,595.6[/tex] ($)
Step-by-step explanation:
Given:
House price increment rate,
= 3.6% annually
(a)
Let the exponential equation will be:
⇒ [tex]P(t) = P_o e^{Kt}[/tex]
here,
t = 0
P = P₀
t = 1 yr
then,
[tex]P(1) = P_o +3.6 \ persent \ P_o[/tex]
[tex]=1.036 \ P_o[/tex]
now,
⇒ [tex]1.036 P_o = P_o \ e^{K.1}[/tex]
[tex]ln(1.036) = K[/tex]
[tex]K = 0.03536[/tex]
Thus, the exponential equation will be "[tex]P(t) = P_o \ e^{0.03536t}[/tex]".
(b)
We know,
[tex]P_o = 600,000[/tex] ($)
[tex]P(t) = 10,00,000[/tex] ($)
∵ [tex]P(t) = P_o \ e^{0.03536t}[/tex]
[tex]1000000=600000 \ e^{0.03536 t}[/tex]
[tex]\frac{5}{3}= e^{0.03536 t}[/tex]
[tex]ln(\frac{5}{3} )=0.03536 t[/tex]
[tex]\frac{\frac{0.5}{0825} }{0.03536} =t[/tex]
[tex]t = 14.45 \ years[/tex]
or,
[tex]t = 14 \ years \ 6 \ months[/tex]
(c)
[tex]P_o=600,000[/tex] ($)
[tex]t = 1 year[/tex]
Now,
⇒ [tex]P(t) = P_o \ e^{0.03536 t}[/tex]
[tex]=600000 \ e^{ 0.03536\times 1}[/tex]
[tex]=621,595.6[/tex] ($)
