To calculate the value of the house in five years, we can use the formula for linear growth:

$\text{Future Value} = \text{Current Value} + (\text{Rate of Increase} \times \text{Time})$

Given:

• Current Value ($V_0$) = $190,000
• Rate of Increase ($r$) = $2300 per year
• Time ($t$) = 5 years

Calculation:

$\text{Future Value} = 190,000 + (2300 \times 5)$ $\text{Future Value} = 190,000 + 11,500 = 201,500$

Final Answer:

The house will be worth $201,500 in five years.

Would you like a breakdown of the calculation or more details?

Related Questions:

1. What will the house be worth in 10 years if the rate stays the same?
2. How much has the value increased after 5 years?
3. What is the percentage increase in the house's value over 5 years?
4. How long would it take for the house to reach a value of $250,000 at the same rate?
5. If the rate of increase doubles, what will the house be worth in 5 years?

Tip:

When solving problems with constant growth, always double-check the units (e.g., years, dollars per year) to ensure accurate calculations.