To determine the future value (FV) of the house, we will use the formula for compound interest, which is:

$FV = P \times (1 + r)^t$

Where:

• $P$ is the present value of the house (the current price, which is $272,000),
• $r$ is the annual rate of increase (3% or 0.03),
• $t$ is the number of years (7 years).

Now, let's calculate the future value:

$FV = 272,000 \times (1 + 0.03)^7$

I'll calculate this.The approximate value of the house after 7 years will be $334,526.

Would you like more details or further explanations?

Here are 5 related questions to deepen your understanding:

1. How would the value change if the annual increase was 4% instead of 3%?
2. What would the value be after 10 years instead of 7?
3. How does compound interest differ from simple interest in this scenario?
4. How could inflation affect the future purchasing power of the house?
5. What is the importance of rounding the future value factor in long-term projections?

Tip: Small differences in the percentage rate can significantly impact long-term growth due to the power of compounding.