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21 August, 15:58

The median price, P, of a home rose from $50 thousand in 1980 to $150 thousand in 2000. Let t be the number of years since 1980. If instead the housing prices increased exponentially, find an equation of the form P = Poa t to represent housing prices. Again, P is measured in thousands. (Round your answer for a to 6 decimal places.)

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  1. 21 August, 16:11
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    150,000 = 50000a^20

    a^20 = 150000/50000 = 3

    a = 20th root of 3 = 1.056467

    Required equation is P = 50000 (1.056467) ^t
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