This problem can be solved using the formula for interest which is: F = P (1 + i)^n where:
F = future value
P = principal value
i = interest per year
n = interest period
Since we are already provided with the values of each, direct substitution should be done. This is shown below:
F = P(1 + i)^n
F = 125000(1 + 0.035)^10
F = 176324.85
Therefore, the value of the house after 10 years will be $176,324.85