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Gareth bought a home for $135,000. The home gained 2.2% in value every year for eight years until Gareth sold it. How much profit did Gareth make, to the nearest hundred dollars? Answers: a. $60,700 b.
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Gareth bought a home for $135,000. The home gained 2.2% in value every year for eight years until Gareth sold it. How much profit did Gareth make, to the nearest hundred dollars?

Answers:
a. $60,700

b. $25,700

c. $23,800

d. $29,100

User Tim Harrison
by
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2 Answers

6 votes

Answer:

Explanation:

C is the answer

User RRN
by
8.2k points
4 votes
We are given with
Present worth = $135000
Interest rate = 2.2% (assume effective)
Time = 8 years

The future worth is
F = 135000 (1 + 0.022)^8
F = 160672.27

The profit is
$160672.27 - $135000 = $25672.27

The closest answer is
b. $25,700
User Sonu Oommen
by
8.8k points
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