The formula \( S=C(1+r)^{t} \) models inflation, where \( C= \) the value today, \( r= \) the annual inflation rate (in decimal form), and \( S= \) the inflated value \( t \) years from now. If the inflation rate is \( 3 \% \), how much will a house now worth \( \$ 153,000 \) be worth in 7 years? Round your answer to the nearest dollar. The house will be worth \( \$ \square \). (Round to the nearest dollar as needed.)

To determine the inflated value of the house in 7 years, we'll plug the values into the formula \( S = C(1+r)^{t} \). Here, \( C = 153,000 \), \( r = 0.03 \), and \( t = 7 \). First, calculate \( (1 + r)^{t} \): \[ (1 + 0.03)^{7} = (1.03)^{7} \approx 1.22504 \] Now, multiply this by \( C \): \[ S = 153,000 \times 1.22504 \approx 187,070.12 \] Rounding to the nearest dollar, the house will be worth \( \$187,070 \). Fun fact about inflation: Did you know that inflation isn't just a modern phenomenon? The concept has been around for centuries! From ancient Rome to contemporary economies, societies have grappled with keeping prices stable to ensure their monetary value doesn’t evaporate like morning dew. If you're curious about housing bubbles, consider researching the housing market trends before and after major economic events. For example, diving into the 2008 financial crisis will reveal how inflation can warp home values. Understanding the history helps consumers make better predictions about future investments!