Last year your construction company built a 2,400 square foot home with a two-car garage for $255,658. Another client wants a similar home built, except they want a three-car garage. It is estimated that the garage will cost an additional $9,500 and that costs have risen 5 percent during the last year. Using this information, prepare a preliminary estimate for the house.

What will be an ideal response?


The cost is as follows:

Cost ($) = $255,658 × 1.05 + $9,500 = $277,941 – Use $278,000

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