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?

The home’s value increases by 2.2% each year, so use compound growth: $135,000 × (1.022)^8 ≈ $160,700. Subtract the original $135,000 purchase price: $160,700 − $135,000 ≈ $25,700 in profit. The correct choice is $25,700.

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