Answer
Given
Sean's house is currently worth $188,900.
According to a realtor, house prices in Sean's neighborhood will increase by 4.8% every year.
To prove
Formula
Where r is the rate in the decimal form.
As given
= 0.048
Put in the formula
Now also calculated monthly.
Formula
As given
= 0.048
Put in the formula
As the approximation quarterly growth rate of the value of sean's house is near the Compounded quarterly interest .
Thus Option (A) is correct.
i.e
The expression reveals the approximate quarterly growth rate of the value of Sean's house.