Question 38156
A $120,000 home would be worth $126,000 after one year (a 5% increase).
A $126,000 home would be worth $131,040 after the next year (a 4% increase).
Choice D is best.
A discount rate is [[old - new) / old] x 100%...so we have
(28,000 - 25,200) / 28000 = 10%
Choice C.