7
QuizMultiple Choice

Real Estate Investments

Question 7 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Roger’s home originally cost him $165,000. For the first six years he lived there, his house grew in value at a rate of 1.6% per year. After that, his property value increased by 3.9% per year for the next eight years. To the nearest hundred dollars, how much had Roger’s home increased in value after fourteen years?

Answer
A
$76,200
B
$75,600
C
$81,500
D
$56,400

Explanation

Apply each annual increase to the value at the start of that period: after 14 years, the home is worth $165,000 × 1.016⁶ × 1.039⁸ ≈ $246,500. Subtract the original $165,000 to find an increase of about $81,500. The correct choice is $81,500.

AI-written and checked against the verified answer.

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