00:01
So in this problem, we're working with home prices.
00:04
And we have that in 2000, the year 2000, the median home price was $320 ,000.
00:11
And from 2000 to 2006, the home price increased at an average rate of about 10 .5 % per year.
00:20
And we'll know the price in 2017.
00:24
So we are increasing at a constant percentage.
00:29
So this is a exponential function.
00:45
Okay? so we have the initial value here.
01:01
Remember, an exponential function is of the form y equals br to the x, where b is the initial value, which we have, and r is the ratio or the multiplication factor okay so let's write our expression then so y is our home price home price not a b home price and x will be the years since 2000 then y is equal to our initial value 320 ,000 times.
02:05
We're increasing up 10 .5 % a year...