BeanieBerrie
Answered

Gareth bought a home for $135,000. The home gained 2.2% in value every year for eight years until Gareth sold it. How much profit did Gareth make, to the nearest hundred dollars?

Answers:

A$60,700

B$25,700

C$23,800

D$29,100

Verified Answer :

MissPhiladelphia

We are given with
Present worth = $135000
Interest rate = 2.2% (assume effective)
Time = 8 years

The future worth is
F = 135000 (1 + 0.022)^8
F = 160672.27

The profit is
$160672.27 - $135000 = $25672.27

The closest answer is
b. $25,700

Answer:

Step-by-step explanation:

C is the answer

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