Due to crime rates in a certain city, home values began to decrease by 4% each year. If a home was purchased in 2015 for $315,000, write and use an exponential function to determine the amount the house will be worth in 2020. Round to the nearest whole dollar.

Step-by-step explanation:

The exponential function for depreciation is given as:

where:

In the case of the home:

Therefore, the exponential function modeling the depreciation of the home's value is:

We want to determine the worth of the home in 2020.

t=2020-2015=5 years

Therefore:

The home is worth $256,842 in the year 2020.