Answer:
£277830
Explanation:
You want the value in 2017 of a £240,000 house that increased in value by 5% per year since 2014.
Exponential relation
The house value is described by the exponential relation ...
value = (initial value)·(1 +growth rate)^t
Using the given numbers, this is ...
value = 240000(1 +0.05)^t . . . . . . where t is in years
After 3 years, the value is ...
value = 240,000(1.05^3) = 277830
At the start of 2017, the value of Jim's house was £277,830.
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