You Buy a House for $220,000 in a Neighborhood Where

Multiple Choice

You buy a house for $220,000 in a neighborhood where home prices have risen 5% annually on average.You suspect that growth in home prices will slow to an average of 3.5% per year over the next five years.If your growth estimate of 3.5% growth is correct,how much less will your house be worth in five years compared with 5% growth?

A) $3,300.00
B) $16,500.00
C) $19,490.95
D) $13,870.51