Question 2 • 26-27 Ignite Financial Literacy Personal Finance - EL3403
Apply each annual growth rate to the home’s value, compounding year by year: $89,000 × 1.048³ × 1.026⁵ ≈ $116,500. The increase is about $116,500 − $89,000 = $27,500, to the nearest hundred dollars. The correct choice is $27,500.
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