Matthew paid $779,000 for a ten-room apartment building nine years ago. The building has lost 2.7% of its value every year. Matthew keeps all of his rooms rented out continually, charging a monthly rent of $810 per room. Upkeep on the building costs Matthew $35,900 every year. If Matthew sells the building, what will his total profit be, to the nearest hundred dollars?

Matthew earns $10 × $810 × 12 = $97,200 in rent each year. After $35,900 in annual upkeep, that leaves $61,300 per year, or $551,700 over nine years. The building’s value after nine years is about $779,000 × (1 − 0.027)^9 = $608,900, so its loss in value is about $170,100. Total profit is $551,700 − $170,100 = $381,600, which is choice D.

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