Edward purchased his home for $89,000. for the first three years after he moved in, the real estate market was very lively, so his property value grew by 4.8% every year. for the next five years, the market slowed down somewhat, and his property value grew by 2.6% every year. how much had the value of edward’s home increased after eight years, to the nearest hundred dollars? a. $25,700 b. $27,500 c. $30,000 d. $13,200

Option 'b' is correct.

Step-by-step explanation:

Since we have given that

Cost of his home = $89,000

Rate of increment every year for first 3 years = 4.8%

Rate of increment every year for next 5 years = 2.6%

We need to find the value of his home after 8 years.

We will use the formula of "Compound interest":

Increment in 8 years is approximately

Hence, Option 'b' is correct.

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step-by-step explanation:

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