Adrian Is a Single Man and Wants to Save Up

question 103

Multiple Choice

Adrian is a single man and wants to save up enough money to put as a down payment on a new house in 5 years. He has read that the best way to purchase a house is with a 20% down payment. He has a large income and very little debt right now so he can afford to save a substantial amount of money every month. He is asking you for some advice to help him reach his goal.
-Adrian just found a very nice house today that is currently selling for $150,000. Based on an inflation rate of 5% in the local real estate market, how much will this house sell for in 5 years?

• A) $187,500
• B) $191,442
• C) $204,650
• D) $157,500