In the year 1985, a house was valued at $120,000. By the year 2005, the value had appreciated exponentially to $155,000. What was the annual growth rate between 1985 and 2005? (Round your answer to two decimal places.)
Assume that the value continued to grow by the same percentage. What was the value of the house in the year 2010? (Round your answer to the nearest dollar.)
Recall the exponential growth model, f(x) = a(b^x). What year corresponds to x = 0? How can the constants a and b be determined from the given information? Which of these values is related to the annual growth rate?
