A function using real estate data can be represented by the function: P(t) = -100t3 + 8000t + 120000, where P represents the average home price and t represents the number of years since 2000. In other words t = 0 represents 2000, t = 1 represents 2001, and so on. Use this information to answer the questions.



1) Find the average home price in 2000



2) Find the average home price in 2005



3) If you had a home that was worth $150,000 in 2006 would your house be above or below average?



4) Find P(7). What does this represent?



5) Examine the values for the year 2008 and 2009. Are the numbers increasing or decreasing? By how much?



6) So this agent told you that 2008 is a good year to buy.

Given the function, would you say that 2008 is a good year to buy a home? Why or why not?