In 2005 a house was purchased for $280,000 and in 2013 it was sold at $334,000. Assuming that
the value of the house increased at a constant
annual rate what will be the price of the house in
the year 2018?

367,750

Step-by-step explanation:

If the value increases by 6750 every year.

334000-280000 = 54000/8 = 6750

334000 + (6750 x 5) = 367,750

Given that in 2005 a house was purchases for 280,000 and was later sold in 2013 for 334,000, determine the increase value of the house and what the price of the house will be in 2018.

First, we subtract the two values of the house on both dates.

334,000 - 280,000 = 54,000

Then, divide the difference by the amount of years from 2005 to 2013.

54,000/8 = 6,750

Since, it says the value increases at a constant rate, this indicates that it is a linear function.

So, the linear function would start at 280,000 as the y-intercept and the slope is 6,750.

Linear Function: y = 6750x + 280,000

Lastly, to find the price of the house in 2018, we just need to plug in 13 for x since x represents the years.

y = 6750x + 280,000

Plug in 13 for x.

y = 6750(13) + 280,000

y = 87750 + 280,000

y = 367,750

Thus, the value of the house in 2018 is $367,750.

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step-by-step explanation: