Question

Assume that in January 2013, the average house price in a particular area was $281,400. In January 2000, the average price was $198,300. What was the annual increase in selling price?

Answer 1

The annual increase is

$6392.61

Step-by-step explanation:

We need to calculate the total increase and then divide by the number of years

It is asking for nominal amount so we are not going to use any rate.

`(current \: value - previous \: value)/(current \: year - previous \: year) = annual \: increase`

281400-198300= 83100 total increase

t2013 - 2000 = 13 time

83100/13=6392.61 annual increase