Question

A house cost $120,000 when it was purchased. The value of the house increases by 10% each year. What is the rate of growth each month?select the correct answer below.

A) 0.797%
B) 0.00797%
C) 0.833%
D) 0.00833%

Answer 1

0.797%

Explanation:

DO NOT PICK THE OTHER ANSWERS

Answer 2

Answer: C) 0.833%

Explanation:

Given: Cost price of house = $120,000

The rate of increase of its cost = 10%

Therefore, the increase amount of house per year =10% of $120,000

`=(10)/(100)*120000=\$12,000`

Now, the amount increase each month=
`(12000)/(12)=\$1000`

Let r be the rate of growth each month, then

r% of $120,000=1000

`\Rightarrow(r)/(100)*120000=1000\\\Rightarrow\ r*1200=1000\\\Rightarrow\ r=(1000)/(1200)=0.833\%`