8
QuizMultiple Choice

Real Estate Investments

Question 8 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Lily is planning to sell her home, which she bought seven years ago for a total of $168,000.The property value has increased by 2.5% each year for the past seven years. In the meantime, Lily has made improvements and renovations to the home which increase its sale value by $52,000. How much will Lily sell the home for, to the nearest hundred dollars?

Answer
A
$261,500
B
$249,400
C
$267,000
D
$251,700

Explanation

The home’s value after seven years of 2.5% annual growth is $168,000 × 1.025⁷, or about $199,700. Add the $52,000 in value from improvements: $199,700 + $52,000 = $251,700. To the nearest hundred dollars, Lily will sell the home for $251,700, choice D.

AI-written and checked against the verified answer.

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