Question

A house cost $120,000 when it was purchased. The value of the house increases by 10% each year. What is the rate of growth each month?select the correct answer below.
A) 0.797%
B) 0.00797%
C) 0.833%
D) 0.00833%

Answer 1

Answer: C) 0.833%

Step-by-step explanation:

Given: Cost price of house = $120,000

The rate of increase of its cost = 10%

Therefore, the increase amount of house per year =10% of $120,000

$=\frac{10}{100}\times120000=\ 12,000$

Now, the amount increase each month=$\frac{12000}{12}=\ 1000$

Let r be the rate of growth each month, then

r% of $120,000=1000

$\Rightarrow\frac{r}{100}\times120000=1000\\\Rightarrow\ r\times1200=1000\\\Rightarrow\ r=\frac{1000}{1200}=0.833\%$

Answer 2

Answer:

0.797%

Step-by-step explanation:

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