The median price, P, of a home rose from 80$ thousand in 1980 to 240$ thousand in 2000. Let t be the number of years since 1980.
(a) Assume the increase in housing prices was linear. Give an equation for the line representing price, P, in terms of t. Use this equation to complete the table below. Note: P is measured in thousands.
P(t)= 8t+80
t / Linear growth price in $1000 units
0 / 80
10 / 160
20 / 240
30 / 320
(b) If instead the housing prices increased exponentially, find an equation of the form P=P0at to represent housing prices. Again, P is measured in thousands. (Round your answer for a to 6 decimal places.)
Use this equation to complete the table below:
t / Exponential growth price in $1000 units
0 / 80
10 / ?
20 / 240
30 / ?