Rosalyn is planning to sell her apartment complex. ten years ago, she bought the eight-room complex for $420,000. the building has gained 2.2% in value every year since she bought it. she charges a monthly rent of $720 for each room, and pays $22,900 per year in upkeep costs. if rosalyn has kept all of the rooms occupied continuously since she bought it, to the nearest hundred dollars, how much profit will she have made in total when she sells it? a. $770,400 b. $554,600 c. $564,300 d. $492,300

c. $564,300

Step-by-step explanation:

We have been given that ten years ago, Rosalyn bought the eight-room complex for $420,000. The building has gained 2.2% in value every year since she bought it.

Since the value of building in increasing exponentially, so we will use use an exponential function to represent value of building after x years.

, where,

a= Initial value of function.

b= For growth function b is in form (1+r), where r represents rate in decimal form.

Upon substituting our given values in exponential function form we will get the value of building (y), after x years as:

Upon substituting x=10, we will get value of building after 10 years.

Let us find rent earned by Rosalyn in 1 month from 8 rooms at $720 per month.  

1 year = 12 months.

10 years = 12*10 months = 120 months.                

Now let us find upkeep costs of building for 10 years by multiplying 22900 by 10.

Now to find the profit that Rosalyn will make from selling building we will add the value of building after 10 years to earnings from rent in 10 years and will subtract the cost of building and upkeep costs.

Upon rounding our answer to nearest hundred dollars we will get,

Therefore, Rosalyn will have made a profit of $564,300, when she sells the building after 10 years and option c is the correct choice.

a

step-by-step explanation: