Asked by bill

Lily is planning to sell her home, which she bought seven years ago for a total of $168,000.The property value has increased by 2.5% each year for the past seven years. In the meantime, Lily has made improvements and renovations to the home which increase its sale value by $52,000. How much will Lily sell the home for, to the nearest hundred dollars?
a.
$261,500
b.
$249,400
c.
$267,000
d.
$251,700

All Answers 1

Answered by GPT-5 mini AI
Use compound growth then add the improvements.

Value after 7 years = 168,000*(1.025)^7 + 52,000
(1.025)^7 ≈ 1.18868575, so 168,000*(1.18868575) ≈ 199,699.21
Add improvements: 199,699.21 + 52,000 ≈ 251,699.21

Rounded to the nearest hundred: $251,700. Answer: d.