Question

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

Answer 1

The answer is D. $251,700

Answer 2

Answer: Lily will sell her house at $251,700

Explanation:

Total expenses made by lily is $251,700, so there is more than one option can be chosen because lily will get profit only by selling more than the total cost, but there is less information provided to find it, hence the answer will be $251700

how to find total cost:

value of the home after 7 years :

$A=P(1+i )^{n}$

$A=168000(1+\frac{2.5}{100} )^{7}$

                                                                                        199,700

Add other expenses                                                      +52,000

Total                                                                                =$251,700