Answer:
The house will be worth $287,163 in 5 years.
Explanation:
To solve this problem, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount (the value of the house in 5 years)
P = the initial amount (the value of the house when it was bought)
r = the annual interest rate (5%)
n = the number of times the interest is compounded in a year (we will assume it is compounded annually, so n = 1)
t = the number of years (5)
Plugging in the values, we get:
A = 225,000(1 + 0.05/1)^(1*5)
A = 225,000(1.05)^5
A = 225,000(1.27628)
A = $287,163.00
Therefore, the house will be worth approximately $287,163 in 5 years, rounded to the nearest dollar.