Answer:
The building is worth $129,375 now.
Explanation:
To find the value of the building now, you can use the following formula:
Current value = Original value + (Original value * Increase percentage)
Plugging in the values given in the problem, you get:
Current value = $125,000 + ($125,000 * 3.5%)
= $125,000 + $4,375
= $129,375