Your Goal Is to Build Your First Home Seven Years

question 75

Multiple Choice

Your goal is to build your first home seven years from now. The home that you desire currently costs $215,900. New home prices are increasing by 4.2% annually. If home prices continue rising at that pace, how much will your home cost when you are ready to build seven years from now?

• A) $281,113.21
• B) $284,109.67
• C) $287,956.36
• D) $292,001.06
• E) $295,474.06

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Definitions:

Ruble

The official currency of Russia, symbolizing the country's economic activity.

Open-Market Operations

The buying and selling of government securities by a central bank to control the money supply and interest rates.

Federal Reserve

The primary banking authority in the United States, tasked with overseeing monetary policy, managing bank regulation, and maintaining financial system stability.

Money Multiplier

The amount of money the banking system generates with each dollar of reserves.