By the time tomorrow, I (will reach) my home.
- will be reaching
- shall have reached
- can reach
- no improvement
What would be the appropriate answer, i think it should be 2
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As everyone else has said, "By THIS time tomorrow..."
"will be reaching our destination" is something you might hear a pilot say on an aircraft. Very formal.
"shall have reached" is archaic. No one uses "shall" anymore.
"can reach" can means the ability or possibility for something to be done or to happen. It does not mean that something was or will be done or happen. However, if you were away from home, talking to someone, who wasn't going with you, about going home, you might say you "can reach home by this time tomorrow."
People sometimes do say something about "reaching" a destination. But they don't usually use "reach" when their destination is home. Home is, by definition, a point of origin. Origin is the opposite of destination. You might reach up to a high shelf to get something. You don't reach down from the shelf after you got it.