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?

Multiple Choice

• $292,001.06

• $287,956.36

• $284,109.67

• $295,474.06

• $281,113.21