Question

You purchase a home for $125,000. The value of the property increases by 1.9% every year. After ten years, you decide to sell the home. In the meantime, you have made renovations and improvements to the house which increase its sale value by $48,300. How much will you sell the house for, to the nearest hundred dollars?
a.
$257,500
b.
$209,200
c.
$150,900
d.
$199,200


Please select the best answer from the choices provided

A
B
C
D

Answer 1

Initial growth: 125,000(1.019)^10 ≈ 125,000(1.207096) ≈ 150,887.
Add renovations: 150,887 + 48,300 = 199,187 ≈ 199,200 (to nearest hundred).

Answer: D.