You buy a house for 220,000 in a neighborhood where

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 a year over the next five years. If your growth estimate 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

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