Question

The value of a house wa shilling 600,000 in 2005.It increased by 25% in 2006 and 10% in 2007 but dropped by 15% in 2007 find its value in 2008​

Answer 1

Given:

The value of a house is 600,000 in 2005.

It increased by 25% in 2006 and 10% in 2007 but dropped by 15% in 2007.

To find:

The value of the house in 2008.

Solution:

We have,

Value of house in 2005 = 600,000

It increased by 25% in 2006.

Value of house in 2006 = $600,000+\dfrac{25}{100}600,000$

                                        = $600,000+150,000$

                                        = $750,000$

It increased by 10% in 2007

Value of house in 2007 = $750,000+\dfrac{10}{100}750,000$

                                        = $750,000+75,000$

                                        = $825,000$

But it dropped by 15% in 2007.

Value of house in 2008 = $825,000-\dfrac{15}{100}825,000$

                                        = $825,000-123,750$

                                        = $701,250$

Therefore, the value of the house in 2008 is 701,250.