Your Goal Is to Build Your First Home Seven Years

Multiple Choice

Your goal is to build your first home seven years from now. The home that you desire currently costs $215,900. New home prices are increasing by 4.2% annually. If home prices continue rising at that pace, how much will your home cost when you are ready to build seven years from now?

A) $281,113.21
B) $284,109.67
C) $287,956.36
D) $292,001.06
E) $295,474.06