Answer:
Value of house in 2017 = 231525$
Explanation:
At the start of 2014 worth of Lucy's house = 200000$
Rate of increase of the value of the house = 5% = 0.05
Value of house in 2015 = 200000+0.05*200000 = 210000$
Value of house in 2016 = 210000+0.05*210000 = 220500$
Value of house in 2017 = 220500+0.05*220500 = 231525$
Number of years in between 2014 and 2017 = 2017 - 2014 = 3 years.
Value of house in 2017 [tex]=200000*1.05^3=231525$[/tex]
