a.A house is worth $400,000 in 2020 but was worth $150,000 in 1990. Using prices in 1990 as the base year, know that prices in the economy have grown on average by 1.50 times between 1990 and 2020.

(i)If the price of the house had risen at the same rate as average prices, what would the house be worth in 2020? Briefly explain your answer.(2 marks)