Yet another math problem

[Brandon Snyder]

Thank you so much for helping me out so far, everyone. I got another math problem for you:

"A buyer purchased a SFR three years ago for $195,000. The property has appreciated at the rate of 5% annually. If this is true, what is the current fair market value of the SFR?"

A: $225,737

B: $230,737

C: $220,737

D: $224,737

[Wayne Brooks]

For plain calculator use: $195,000 *1.05*1.05*1.05=

Don't get hung up on trying to memorize which formula to use for which kind of problem.  Math is just pure logic.  Break the problem down to simple common sense.  If something increases at 5%/yr for three years....just add 5% for year one, get that number then add another 5% for year two, then another 5% for year three.