Question

The average house value in a neighborhood is $230,000 based on 100 houses. Due to some playground and street improvements, 50 houses have increased in value by $12,000 and the other 50 remained unchanged. What is the new average value of the 100 houses?

Answer 1

$236,000

Explanation:

Okay. Now, the first thing we need to get the value of the increase across all houses. For this we know that the increase span across 50 houses with an increase of $12,000. Now the total value of increase would be 12,000 * 50 = 600,000

Now, formerly we know that the total value for all the houses would be 230,000 * 100 = 23 000 000. Adding the value for the increment would be 23 000 000 + 600 000 = 23 600 000

The new average would this be 23 600 000/100 = $236,000