Question

The housing market in Dallas, Texas, experienced a 9.8% increase in the past year. If the median home price was $96,812 one year ago, what is the current median home price? Round your answer to the nearest dollar.

Answer 1

Answer:  $106,300

Step-by-step explanation:

A = P(1 + r)

• A is the accrued amount (balance)
• P is the principal (initial amount)
• r is the rate --> convert to a decimal

Given: P = 96,812    r = 9.8% --> 0.098

A = 96,812(1 + 0.098)

   = 96,812(1.098)

   = 106,299.576

rounded to the nearest dollar is $106,300