Question

A house on the market was valued at $397,000. After several years, the value decreased by 8%. By how much did the

house's value decrease in dollars? What is the current value of the house?

Answer 1

House value=278000$

Decrease of 9%=0.09

1. Value decrease: 278000$x0.09%=25020$

The house decreased by 25020$.

2. Current value of the house:
278000$-25020$=252980$

The current value of the house is 252980$.

Answer 2

Answers:

The house's value decreased by $31,760

The current value is $365,240

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Work Shown:

8% of 397,000 = 0.08*397000 = 31,760 is the amount of lost value in the home. In other words, the value has dropped by this much.

The current value is 397,000-31,760 = 365,240

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If you didn't care about how much value was lost, and only cared about the current value, then you can take this slight shortcut

100% - 8% = 92%

92% of 397,000 = 0.92*397000 = 365,240

If the house lost 8% of its value, then it keeps the remaining 92% to be currently valued at $365,240

This shortcut is useful if you wanted to chain together many percentage increases or decreases together.