9514 1404 393
Answer:
$7369
Step-by-step explanation:
An exponential function is of the form ...
f(x) = a·b^x
where 'a' is the initial value, and 'b' is the growth factor. When the growth is given as a growth rate (4% per year), the growth factor is that value plus 1.
Here, the initial value, for x=0 in 2018, is 5600. So, the exponential model of the rent is ...
r(x) = 5600·(1 +.04)^x
r(x) = 5600·1.04^x . . . . . . . for x years after 2018
__
In 2025, we have x=2025 -2018 = 7. Then the rent is ...
r(7) = 5600·1.04^7 ≈ 7369
The rent of the apartment in 2025 is $7369 per year.
