44 Real estate appreciation If the value of real estate in- creases at a rate of 5% per year, after t years the value V of a house purchased for P dollars is V = P(1.05). A graph for the value of a house purchased for $80,000 in 1986 is shown in the figure. Approximate the value of the house, to the nearest $1000, in the year 2010. Exercise 44 V (dollars) 300,000 250,000 200,000 150,000 100,000 50,000 1987 2010 5 10 15 20 t (years)

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