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Kisachek [45]
3 years ago
14

The prices of houses in Tennessee have been on a steady incline for the last several years. If the average price of a house has

increased by 8.5% over the last year to $135,000, what was the average price of a house last year?
Mathematics
1 answer:
sveticcg [70]3 years ago
8 0

Answer:

The average price of a house last year was = $124,423.96

Step-by-step explanation:

Let the average price of houses in Tennessee last year in dollars be = x

This year the increase percentage in average price was = 8.5%

The change in average price can be calculated in dollars as:

⇒ 8.5\%\ of\ \textrm{Last year average price}

⇒ 0.085\times x

⇒ 0.085x

New increased average price in dollars can be calculated as:

\textrm{Last year average price + Increase in average price}

⇒ x+0.085x

⇒ 1.085x

The new increased average price actually is = $135,000

So, we have,

1.085x=135000

Dividing both sides by 1.085

\frac{1.085x}{1.085}=\frac{135000}{1.085}

∴ x=124423.96

Thus average price of a house last year was = $124,423.96

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