Question

A lakefront lot purchased 2 years ago for $30,000 is now worth $35,000. Assuming the appreciation is linear, what is the equation that gives the value of the lot at any time `t` in years?

Answer 1

`$30,000 + t (2,500) =` value

Explanation:

The value must start with the initial value of the lot. Then add the yearly "linear" increase.

The increase over 2 years is `$ 35,000 - 30,000 = $5,000`

The yearly increase is `$(5,000)/2 = (2,500)/1`

let t equal the number of years

`t xx (2,500)/(yr) =` the increase for any time in years so

`$ 30,000 + t xx ( $2.500)/(y)r =` value of the lot.