9
QuizMultiple Choice

Real Estate Investments

Question 9 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Tammy’s home cost her $184,000. She lives in an area with a lively real estate market, and her home increases in value by 3.5% every year. If Tammy sells her home after thirteen years, how much profit will she have made, to the nearest hundred dollars?

Answer
A
$8,500
B
$87,800
C
$83,700
D
$103,800

Explanation

The home’s value grows by 3.5% each year, so use compound growth: $184,000 × (1.035)^13 ≈ $287,800. Subtract the original cost: $287,800 − $184,000 ≈ $103,800 profit. The correct choice is $103,800.

AI-written and checked against the verified answer.

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