Question

According to a certain central bank from 2000-2016 the average price of a new home increased by 74% to $437. What was the average price of a new home in 2000?

Answer 1

$251.15

Explanation:

Answer 2

$251.15

Explanation:

If 74% of the price of a home was added to the price of a home, the new prices is 1 + 0.74 = 1.74 times the old price.

$437 = 1.74 × (price in 2000)

We can solve this by dividing both sides of the equation by 1.74.

$437/1.74 = (price in 2000) ≈ $251.15