Twenty years from now, you would like to purchase a cottage located on the shores of your favourite lake. You expect that you will have $250,000 available at that time for this purchase. You could afford a home that is currently selling for ____ if the homes increase in value by 3% annually, but if the homes increase in value by 5% annually, you can only afford a home priced at _____ today.
A) $127,023; $92,687
B) $138,419; $94,222
C) $138,419; $114,097
D) $144,676; $100,469
E) $144,676; $111,068

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The Answer of Twenty years from now, you would like to purchase a cottage located on the shores of your favourite lake. You expect that you will have $250,000 available at that time for this purchase. You could afford a home that is currently selling for ____ if the homes increase in value by 3% annually, but if the homes increase in value by 5% annually, you can only afford a home priced at _____ today.
A) $127,023; $92,687
B) $138,419; $94,222
C) $138,419; $114,097
D) $144,676; $100,469
E) $144,676; $111,068

Twenty Years from Now, You Would Like to Purchase a Cottage