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 =
This year the increase percentage in average price was = 8.5%
The change in average price can be calculated in dollars as:
⇒
⇒
⇒
New increased average price in dollars can be calculated as:
⇒
⇒
The new increased average price actually is = $135,000
So, we have,
Dividing both sides by 1.085
∴
Thus average price of a house last year was = $124,423.96