Answer:
$337,500
Explanation:
Formula for simple interest
A = p (1 + rt)
where A is final amount, (the answer/the price of the house this year)
where p is 'initial principle balance', (the starting price, i.e. $250,000)
and finally where 'r' is the annual interest rate ie. 35% (turn into decimal i.e. 0.35) , and 't' is time (in years i.e. 1 because from last year to this year, one year has passed, e.g. 2022-2021 = 1)
therefore 'rt' = 0.35*1
= 0.35
We are trying to find 'A' the unknown value
Sub in all the values with the knowledge above so that:
A = 250,000 (1 + 0.35)
expand
A = 250,000 + 87500
87500 is the interest
therefore the value of the house this year is $337,500
A = $337,500
at least I believe this is the correct answer, feel free to cross check if I'm wrong