Question 31 • 26-27 Ignite Technical Math-Financial Math - MA2007
The home’s value after 20 years of 2% annual growth is $105,000 × 1.02²⁰, or about $156,000. Add the $28,700 value from the renovations, then subtract the original $105,000 purchase price: $156,000 + $28,700 − $105,000 ≈ $79,700. The profit is about $79,700, choice a.
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