I Just want to make sure if its right: If it isn't right please help

In hot markets, houses tend to appreciate about 8% each year. If you bought a house for $250,000 and then sold it 5 years later, how much profit would you expect to make (round to the nearest dollar)?

A)$117,332
B)$20,000
C)$367,332
D)$617,332

I chose the answer: C

Question

I Just want to make sure if its right: If it isn't right please help

In hot markets, houses tend to appreciate about 8% each year. If you bought a house for $250,000 and then sold it 5 years later, how much profit would you expect to make (round to the nearest dollar)?

A)$117,332
B)$20,000
C)$367,332
D)$617,332

I chose the answer: C

anonymous · Answer

This is correct, but how did you get it? Honestly the choices are VERY far off and you could have just used process of elimination to find a reasonable answer.

anonymous · Answer

I used y = 250000(1.08)^x. but actually its wrong. The answer was A. Thanks for helping tho.

anonymous · Answer

oh man, oops, I didn't read carefully, the profit would be 367k - 250k, my bad. Because you would need to recuperate the initial cost of purchasing the house.

anonymous · Answer

Its fine :) really