You Hope to Buy Your Dream House 3 Years from Now

Multiple Choice

You hope to buy your dream house 3 years from now. Today, your dream house costs $247,900. You expect housing prices to rise by an average of 7.5% per year over the next 3 years. How much will your dream house cost by the time you are ready to buy it?

A) $292,063.48
B) $294,882.01
C) $298,600.00
D) $307,965.40
E) $309,425.45