Question

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

house after eleven years, how much was it worth, to the nearest hundred dollars?
ckboard
Mic
A
$133,700
B. O
$95,400
E Skills
Mic
C.
$95,300
D. O
$93, 100
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Offi
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D
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Answer 1

C

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.