Question

Arya paid $75,000 for her house. Its property value increased by 2.2% per year. When Arya sold her

Answer 1

Answer:

C

Step-by-step explanation:

This is a compound growth problem which is governed by the formula shown below:

$F=P(1+r)^t$

Where

F is the future amount (we want to find this)

P is the present amount (which is 75,000)

r is the rate of increase, in decimal (this is 2.2% or 2.2/100 = 0.022)

t is the time in years (which is 11 years)

Substituting the known values, we find F, the amount it is worth after 11 years:

$F=P(1+r)^t\\F=75,000(1+0.022)^{11}\\F=75,000(1.022)^{11}\\F=95,284$

Rounding to nearest hundred, that will be $95,300

Answer choice C is right.