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You have inherited land that was worth 30,000 in 2000. The value of the land V increases according to the model V=30,000(1.04)^t where t is the number of years since 2000. The land will be worth 90,000 in what year?

Answer :

AplWe are given that the value of land increases according to the following function:

[tex]V=30,000\left(1.04\right)^t[/tex]

We are asked to determine the value of "t" for which the value of the function is 90000.

to so that we will set the function equal to 90000:

[tex]30000\left(1.04\right)^t=90000[/tex]

Now, we solve for "t". To do that we will divide both sides by 30000:

[tex](1.04)^t)=\frac{90000}{30000}[/tex]

Solving the operations:

[tex](1.04)^t=3[/tex]

Now, we take the natural logarithm to both sides:

[tex]ln(1.04)^t=ln3[/tex]

Now, we use the following property of logarithms:

[tex]lnx^y=ylnx[/tex]

Applying the property we get:

[tex]tln(1.04)^=ln3[/tex]

Now, we divide both sides by ln(1.04):

[tex]t=\frac{ln3}{ln1.04}[/tex]

Solving the operations:

[tex]t=28[/tex]

This means that the land will be worth $90000 28 years since 2000, therefore, the year is 2028