Step 1 :The problem is asking for a linear equation that describes the value of the home. The value of the home in 1996 is the y-intercept (b) and the slope (m) is the rate of increase per year. We can find the slope by subtracting the initial value from the final value and dividing by the number of years. The equation will be in the form y = mx + b.
Step 2 :Given: initial_value = $181,262, final_value = $266,694, initial_year = 1996, final_year = 2000.
Step 3 :Calculate the slope (m) using the formula: \(m = \frac{final\_value - initial\_value}{final\_year - initial\_year}\).
Step 4 :Substitute the given values into the formula: \(m = \frac{266694 - 181262}{2000 - 1996} = 21358.0\).
Step 5 :The slope of the line, which represents the rate of increase in the value of the home per year, is $21358.
Step 6 :The y-intercept (b), which represents the initial value of the home in 1996, is $181262.
Step 7 :Therefore, the equation that describes the value of the home is \(y = 21358x + 181262\).
Step 8 :\(\boxed{y = 21358x + 181262}\) is the final answer.