Answer: C
Explanation:
To find the approximate value of the home after 10 years, we can use the exponential growth formula:
Future Value = Present Value * (1 + growth rate) ^ number of years
In this case, the present value is $180,000, the growth rate is 3% (0.03), and the number of years is 10.
Future Value = 180,000 * (1 + 0.03) ^ 10
Now, let's calculate:
Future Value = 180,000 * (1.03) ^ 10
Future Value = 180,000 * 1.34391637934412
Future Value ≈ 241,904.94
The closest answer to this value is C. $242,000.